Gas Prices

in Automobile, Gasoline

Years ago we complained about gas prices at 84 cents a litre, and soon gas will be 100% more. My how things change.

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)?

{ 1 comment }

  • Phillip April 20, 2009, 3:24 PM

    Certainly here in Victoria (99.9 cents), I suspect (3). When it goes up, it goes up evenly across town. When it goes down, they all go down. There doesn’t seem to be any competition at all so it’s really a mixture of (1) and (3).

    Reply

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