Ryan Remiorz
Gasoline prices have Canadians in a tizzy right now, to the point where the Conservative government -- now sporting a majority and thus having no need to pander to voters -- wants to put oil and gas executives on the hot seat to explain why gas prices are at record highs.
But the price at the pumps compared to the price of oil is not out of step with historical trends, according to data compiled by Dirk Lever, a vice-president of sales at Commission Direct Inc. Consumers and politicians are overacting, he argued Friday.
Using two bits of data from Bloomberg, Mr. Lever put together a graph comparing the historical price per barrel of Alberta light oil transported to Toronto, to gasoline prices in the same region. The result? The price of gasoline relative to the price of crude is now roughly the same as it has always been.
"I don't think one can conclude decisively that people are getting gouged," he said.
The graph, Mr. Lever concedes, is just a rough sketch. Toronto drivers generally power their cars using oil imported from the North Sea or elsewhere, rather than Alberta light oil. Further, the graph doesn't account for any tax changes that may be built into the price of gasoline. But, while imperfect, it does compare apples to apples. While Mr. Lever isn't pleased about paying up to fill up, he's not raging at oil and refining companies.
"The politicians haven't done their homework," he said.
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