Canadian Personal Finance Blog

Archive for April 20th, 2009

What costs 84 cents in Ottawa 68 km away costs 64 cents a liter and 140 km away costs 76 cents a liters?

1. Milk
2. Beer
3. Gasoline

Given the postings title, the correct answer is of course Gasoline. Yesterday I did a quick run to Cornwall, and my wife told me to wait until I got to Cornwall before I filled up because gas prices were cheaper there. 

Gas was indeed 6 cents a liter cheaper in Cornwall, so I filled up there, however as I drove back to Ottawa the Esso at the bottom of the 416 just before you head towards the bridge across to the U.S. had their gas at 64 cents (maybe 66 cents) a liter! Holy cow! That is an astounding bit of price variance for a 140 km radius that is for sure. 

Reasons for this odd price variance?

1. Price gouging by large oil companies?
2. The free market in full operation?
3. Price fixing?

I have no idea it is (2) for sure because the free market is allowing this to happen although I’d be curious to hear my readers’ opinions on how much they think it is (1) and/or (3) as well.

What other commodity or item can have this much variance in such a small area (aside from “sales” and such)?