Dollar a Litre Gas Returns for the Summer

in deficit, Gasoline, Government, Inflation, Pensions, Retirement Savings

From 2009, seems very much like today, does it not?

Just in time for your vacation, Gasoline at $1 per litre is coming to a gas station near you.  What is causing this return to last summer’s prices? No real reason, no huge jump in demand, or huge drop in supply, simply prices wandering their way back up.  If anyone can explain to me why this price increase is happening, I’d be glad to hear it, but for now it seems like Gas companies are looking to fortify their incomes for the summer.

Surely Oil prices must be going up?

Certainly don’t see anything in that graph that suggests why prices are creeping up, guess the price of Oil doesn’t have much reflection on the price of Gasoline.

Luckily gas prices don’t affect any other prices, like food or the like.

Retirement = Pension + Part Time Job?

The government announced new CPP rules starting in 2012, where if you “retire” early at 60 you won’t have to quit your job to get your CPP payments, which is interesting. The change also comes with a catch, where normally at 60 your CPP benefits are reduced by about 30% (from what you would receive at 65), however under the new plan this reduction will now be 36% drop, so there is a catch.

This is in reaction to the number of Canadians who do NOT have a pension (other than the CPP), so a step in the right direction, but is it enough?

Oh, and the deficit for this year’s budget is going to be MUCH bigger, in case you were curious too (Yikes).

{ 2 comments }

  • Traciatim May 26, 2009, 9:21 AM

    I found an interesting quote on a press release about the $1.00 gasoline that stated:

    “At this time last year, a barrel of crude was worth US$130 on world markets. That figure was less than half on Monday, falling to around US$61 barrel on the New York Mercantile Exchange as investors eyed an OPEC meeting this week and weighed evidence of a global economic recovery.”

    Yet I don’t think gasoline is half the price it was last year. If I remember correctly it was somewhere near $1.40 last year. Shouldn’t the gas price be hovering somewhere between $0.70-$0.80? Who’s skimming off the top is what I want to know.

    Reply

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