Thursday, November 16, 2017

EXPLAINING CANADA'S HIGH GAS PRICES

At the moment this story goes online, gasoline in Tsawwassen, B.C. is $1.45 a litre. Drive a mere two kilometres south into Point Roberts, WA, however, and gas can be had for the equivalent of CAD$1 per litre.
What gives? Canada has more oil than everyone except Venezuela and Saudi Arabia and we remain the single largest foreign supplier of U.S. oil. So why are we paying a nearly 50 per cent premium on a product that by all rights should be flowing from our kitchen faucets
But Dan McTeague of GasBuddy.com is pretty sure that more unseemly forces are at work in maintaining the U.S.-Canadian price gap. He chalks it up to a “distinct lack of competition” among Canadian refiners, allowing artificially high wholesale prices to persist unchecked.

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