The price of oil has dropped drastically to well below $92.00 a barrel as of September 16, 2008. We also know that hurricanes Ike and Hurricane Gustav and the closure of refineries in that affected area have no bearing on Canadian fuel prices which proves we as Canadians are being taken for a financial ride by the oil barons such as Shell, Imperial Oil, Chevron and Petro Canada…

I recall a long ago conversation with a than friend and executive of Shell oil. The part of the conversation that has long glued itself to my memory was the fact that, as he stated, oil companies, including Shell, cap their oil wells to enable them to keep the price of fuel up at the pump.

Here we are now in the fall of 2008 (September 16) and the price of gas still sits at $ 1.51 per liter; a twenty-(20) cent increase from three days ago when I filled up at $1.35. With the Federal elections now in full swing in Canada perhaps on the of the main issues the politicians should be looking at as part of their campaign strategy is presenting options to regulate the oil companies and putting an end to the present price gouging as opposed to looking at ways of bringing in carbon taxes which will increase the cost of fuel even further.

As the Green party states, and which Stephen Dion also espouses we should have a carbon tax added to the already high fuel prices The formula presented by the Greens is as follows, “…1 litre of gas produces 2.34kg of CO2, so $50 per tonne adds about 12 cents to the pump price per litre.” That means fuel costs would rise again from the present price of $1.51 per litre to $1.63 per litre.

Those costs would of course be passed on to us the consumers not only at the pump but in every other aspect of our lives such as groceries, clothing, medicine and every mode of transpiration necessary to transport those goods to market and yes, another increase at the pumps to offset what the oil companies would supposedly be paying as well.

Oil companies need to be held accountable by forced regulation which would stop price gouging at the pumps hereby ensuring consumers get a fair return for their dollar. Those savings could then be spent on other necessities to sustain life. Then we can discuss the carbon tax.


Allan Herman, Creative Visual Marketing Services Incorporated (CVM Inc.)