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Ready for gas at $1.50 a litre?

ROMA LUCIW

Globe and Mail Update

Latest comment posted at 10:17 AM EST 10/01/08

CIBC's Jeff Rubin forecasts soaring prices at the pump, as global oil supply has trouble keeping pace with demand ...Read the full article

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  1. CatMan Due from Canada writes: Rubin has be right so often, that I am taking this as fact. I guess we will be walking a bit more, and I will be looking for a new bike this year. Maybe I can work off the molson muscle.
  2. Ted B from Toronto, Canada writes: At $1.50 the government will collect far more taxes which is a good thing. Its also time to put tolls on all highways. We should not be subsidizing trucks coming from Vancouver full of Chinese trinkets and from California full of fruit and veggies that lack nutrition.
  3. Jody Greening from Burlington, Canada writes: And it begins... or has it already begun??
  4. Mark H from Columbus, IN, United States writes: 'Ted B from Toronto, Canada writes: At $1.50 the government will collect far more taxes which is a good thing. Its also time to put tolls on all highways. We should not be subsidizing trucks coming from Vancouver full of Chinese trinkets and from California full of fruit and veggies that lack nutrition. '

    What kind of fruits and vegetebles lack nutrition? Are you saying that by virtue of being from California, they don't have vitamins? Seriously, what a loony thing to say. Oh, and the roads that you drive on that don't have tolls already have an invisible toll in the form of gas taxes. You must be far richer than I if you're OK with the government sticking it to you twice for the same thing.
  5. Ted B from Toronto, Canada writes: I'm a racist just like every other human being. I show no prejudice though when I hire people or live my life.
    I disagree with the statement that 'without chinese products, we have nothing!' I'm a capitalist through and through with a little common sense. I do not think we should be selling our technology to communists.
  6. Al MacDonald from Think Gr$$n, Canada writes: Unless we wake up one morning and read a headline something along the lines of U.S. Invades Iran, I don't think we have to worry a whole lot about gas at $1.50 per liter, although that would take a few of the big gas guzzling trucks and SUV's off the road wouldn't it.
  7. Frankie @^_^@ from Canada writes: this is why i believe there should be free public transportation. Every car owner would pay a surcharge as well as all property owners would pay a public transport tax on their property tax bill. This would pay for the cost. I know, i would leave my car at home.
  8. Ted B from Toronto, Canada writes: I'm saying fruits and veggies from distant lands lack the nutrition of fruits and veggies locally grown as they're picked before they're ripe. They're also irradiated prior to entering the country. There are a number of studies that indicate that many of today's veggies lack the nutrition they had in the past. This probably also applies to much of what's being locally grown.
  9. Logo Pogo from United States writes: 'Ted B from Toronto, Canada writes: At $1.50 the government will collect far more taxes which is a good thing. Its also time to put tolls on all highways. We should not be subsidizing trucks coming from Vancouver full of Chinese trinkets and from California full of fruit and veggies that lack nutrition. '

    There is already a tax on gasoline meant only to fund infrastructure improvements. However, every government that comes into power, seems to appropriate it for some other use or pet project.

    This is one of the reasons why Canada's infrastructure is crumbling.
  10. Hugh Campbell from Canada writes: Ted B from Toronto, Canada writes: 'We should not be subsidizing trucks coming from Vancouver full of Chinese trinkets and from California full of fruit and veggies that lack nutrition.'

    Food is also coming from China. Check out the garlic at your local bigbox food store. In fact, 'Product of Canada' can be applied to food produced in other countries if there is some processing or packaging done here.
  11. Ted B from Toronto, Canada writes: Here's the white/black racist test as discussed in Malcolm Gladwell's book, Blink. It makes many very uneasy.

    https://implicit.harvard.edu/implicit/demo/index.jsp
  12. brokeback mountain from Canada writes: 'Frankie @^_^@ from Canada writes: this is why i believe there should be free public transportation. Every car owner would pay a surcharge as well as all property owners would pay a public transport tax on their property tax bill. This would pay for the cost. I know, i would leave my car at home. '

    I agree with what you said 100%, and we are already paying this 'tax', just that our government doesnt put it back to public transportation, where it belongs
  13. Bob Loblaw from Nova Scotia, Canada writes: Mass transit is great, if it is available. There isn't any other option to get to work here in my part of the world that doesn't involve me driving. Whether I drive my SUV or my bike, I have to get there on my own. I really don't want to pay for free buses in TO while I am forced to drive here in NS. There simply insn't the population density here or in many other parts of the country I'm sure.
  14. Karlheinz Schreiber from Victoria, Canada writes: Last week they said $1.30 and this week it is $1.50. I hope it hits $3.
  15. John - from Canada writes: The Tata-made Nano has just been introduced in India at a price of $2500.00. With it's 33 hp engine, this car would be the ideal vehicle for tooling around the city - imagine the awesome gas mileage. It's time that North American auto-makers followed Tata's lead and began manufacturing similar vehicles over here.

    Although not ideal for longer trips, such a car would be great for commuting and shopping. I'd certainly buy one, especially with such a low sticker price. I'm certain that the gasoline savings and affordability would make this car quite appealing to many North Americans.
  16. Jeff Pritchard from Canada writes: We would be wise to invest in better, and more reliable, public transit.

    This problem is not going to go away.
  17. The Defender from Whitby, Canada writes: Governmemt of Canada, approve the Zenn Car now.
  18. Johnny Luft from Canada writes: Frankie @^_^@ from Canada says 'this is why i believe there should be free public transportation.'

    Oh you mean 'free'....like health care is 'free'. What an incredibly stupid idea!
  19. C D from Canada writes: What about getting ready for 85 cents a liter? Don't say it can't happen. Speculation driven markets are a wonderful thing.
  20. Two Cents from Toronto, Canada writes: So how come the Canadian dollar keeps on falling???
  21. Art Critic from Canada writes: Argue about veggy nutrition and infrastucture funding all you like people - but the reality is that your gasoline bill is gonna be triple what it was five short years ago. The knock-on effect of delivery expenses is going to set inflation jumping by an additional 5% or so.

    So what are you going to do - just lie back and take it or make a corresponding change? Personally I'm junking the 3.6 litre V6 wagon and getting a nice little <2litre compact. Doing my little bit for GHG reduction too.

    In another 5 years I expect to be driving even fewer km and using a vehicle <1litre. It's all good change.
  22. Art Critic from Canada writes: Two Cents from Toronto, Canada writes: So how come the Canadian dollar keeps on falling???

    Two Cents didn't pass economics 101.
  23. the douglas from haldimand, Canada writes: If Rubins prediction holds true to form, I foresee gas at 49 cents per GALLON.
  24. Art Critic from Canada writes: the douglas from haldimand, Canada writes: gibberish
  25. Lyndon Tree from Canada writes: Get ready to pull the plug on CIBC: Canadians.
  26. Johnny Luft from Canada writes: D from Canada says 'What about getting ready for 85 cents a liter? Don't say it can't happen. Speculation driven markets are a wonderful thing. '

    You should play the market then, D. Come on....plunge in....take the risk.
  27. Johnny Luft from Canada writes: Lyn Alg from Canada writesays 'Each time JERKS like Rubin states that the price of gas will be $ 1.50 per litre or higher, it gives the oil companies the justification of increasing their prices. Could it be that Rubinovitch has shares in the oil companies?'

    Pretty libelous comments, there Lyn. Tell me, do you go on a similar rant when Al Gore makes his idiotic comments about global warming given that he has a vested interest in numerous companies that cash in mightily on the global warming dogma?
  28. Ryan Fillmore from Sackville, Canada writes: If gas does get to $1.50, which I do fear it will... i'm gonna stuck at home, cause I can just afford to drive with gas around $1.10. Its time that oil was removed from the commodities list, and declared a necessity of life. 85% of all the products produced/consumed or used to power our industrial nations, come from crude oil and its by-products. Any resource/product/commodity that is used to this high of a level (50% or better) should be removed from the market, so 'speculators' cannot mess with people lives like they do now.

    At $1.50 per liter, I'll just stay and home more... if I can't drive my car, I have no place to go.
  29. scamp the from Canada writes:
    no biggie. Oil is a non renewable resource...we all know that.
    Maybe you guys have missed the developments. We have hybrids and modified plugin-hybrids right now.

    Give it 2 or 3 years and plugin hybrids will be readily available. Then your average commuter will be able to do the commute just off battery power.

    So gas is going up, as it should with more demand. Shouldn't environmentalist be cheering this news, as this is what is getting more car companies to build more fuel efficient vehicles and makes more people comtemplate transit?

    BTW...no need to 'invest' in public transit, charge the full price for it. People don't use transit for the environment, they use it because it's convenient. When people figure that out, they will realize you don't need to subsidize transit to such an extent (for low-income people have an exemption).
  30. Chris Kempan from writes: If you look back a few years, I'm sure you could find a prediction that gas in 2008 would be $5 a Liter, yet it isn't.
  31. brokeback mountain from Canada writes: 'Bob Loblaw from Nova Scotia, Canada writes: Mass transit is great, if it is available. There isn't any other option to get to work here in my part of the world that doesn't involve me driving. Whether I drive my SUV or my bike, I have to get there on my own. I really don't want to pay for free buses in TO while I am forced to drive here in NS. There simply insn't the population density here or in many other parts of the country I'm sure. '

    great, then don't ask people in ontario to pay tax so we can subsidize the high unemployment in the Maritimes and aging population in Quebec
  32. brokeback mountain from Canada writes: no sure why the economists are worrying so much.. like they said, we are heading to recession, so people will be laid off soon, so fewer people will be driving to work, lower demand for gas, the price will come down eventually
  33. Tony . from Waterloo, Canada writes: Ted B from Toronto, Canada writes: 'At $1.50 the government will collect far more taxes which is a good thing.'

    If gas goes up from $1.00/litre to $1.50/litre, the Federal government gets a grand total of an extra 2.5 cents/litre from the GST. That's it. This would translate to something like $1.2B/year total revenue if prices stayed at that rate for the entire year.

    The Provincial governments from Ontario on west get a big fat goose-egg.

    The 5 eastern-most provinces mostly get an extra 4 cents per litre since they all charge provincial sales tax (PST in Quebec, HST in the other 4) on gas.

    All other taxes on gasoline are fixed at a per-litre value.
  34. Stu Gazo from Canada writes: Im all for smaller, more fuel efficient car's for sure, just as long as EVERYONE has to drive one. A little Nissan Micra or Tata Nano has little chance in a collision with an H3 or some other monstronsity out there on the road, even in city driving conditions. One of the only reasons I drive a mid-size sedan is to protect myself and my family from the people that insist on driving military battlefield vehicles to pick up milk and rent videos.
  35. Journey Man from Canada writes: Read about the implications of 'peak oil' (e.g., the geologist Dr. K. Deffeyes... http://www.princeton.edu/hubbert/ ) or at least watch the documentary: 'A Crude Awakening' see... http://www.oilcrashmovie.com/ ).

    Get ready for $5 or $10 per litre gas (plus food shortages, economic failure, war, etc.). The only question left now is: When?

    But hey on the bright side, Panasonic just came out with a 150' plasma TV. Get in line now mindless consumers!!! (My estimate is that it will take about as much power to run it as an electric clothes dryer...but no problem, we will just build more windmills.)
  36. Kevin Dooley from Canada writes: I'd personally like to see gas a $5/litre due purely to a higher gas tax. Waive the tax for trucks, farm equipment, emergency vehicles and taxis, but tax through the nose on personal vehicles. That's the only way we'll start seeing decent mileage stats on cars. And, better still, if we use that tax to fund public transportation, there'll be less of a reason for needing to drive.

    What's that you say? You live more than 50 miles from your place of work? Well that's poor planning, isn't it? Maybe your office needs to investigate telecommuting options.
  37. brokeback mountain from Canada writes: but we all know that gas price has very little to do with supply and demand..
  38. juice orange from Canada writes: I hope my wages increase to offset the high gas prices. Driving to the cottage on the weekends will be expensive and taking the boat for a cruise, you might have to cut back. I don't see a lot of private airplanes in the skys anymore, they're the first to be hit.
  39. Super Farmer from Canada writes: Ryan Fillmore from Sackville, Canada writes:

    At $1.50 per liter, I'll just stay and home more... if I can't drive my car, I have no place to go.

    Exactly. And you want the government to regulate the price of oil so you'll 'have some place to go'? And people who think like this also vote - amaing.
  40. brokeback mountain from Canada writes: wow, the censorship god of the globe is now starting to close off reader's comment... beware
  41. Randy McClure from Canada writes: brokeback mountain from Canada writes: but we all know that gas price has very little to do with supply and demand.. Utter nonsense. The price of crude oil is the largest component in oil prices. The fact is world conventional oil production peaked in May of 2005 and when non-conventional sources such as tar sands and liquified natural gas are included total production peaked in october 2006. Producers are going flat out with production. Oil producers themselves are using more oil and gas, and rapidly industrialising countries are consuming more and more and more. David Hughes, recently retired from the Geological Survey of Canada said it best at a recent ASPO (Association for the Study of Peak Oil) conference: 'We got started in 1859 and by 2006 we had consumed nearly 1.1 trillion barrels of oil and that is getting close to half of all the oil that humans will ever consume ... the key thing aout this is that 90% of that oil was consumed since 1958, half of it since 1984 and 10% since 2002.' That is an exponential curve of some significance and it means that we will run out oil in less than 50 years. Have you started teaching your kids how to shoe a horse, butcher a hog and grow wheat? Because it's 1859 all over again. You may laugh from the grave, but think about your kid's future. We need to conserve, cut consumption and buy time so we can get a plan together to make other arrangements in an orderly fashion and avoid utter chaos. The last thing we want right now is for governments to cut taxes and make it easier to consume oil -- we'll only run out faster ... not to mention cook our planet.
  42. Ryan Fillmore from Sackville, Canada writes: Super Farmer from Canada writes: Ryan Fillmore from Sackville, Canada writes:

    At $1.50 per liter, I'll just stay and home more... if I can't drive my car, I have no place to go.

    Exactly. And you want the government to regulate the price of oil so you'll 'have some place to go'? And people who think like this also vote - amaing.

    Do you own a car/truck? Do you not enjoy getting out on the open road, touring the country side and relaxing to the music on the radio? If not, that's to bad, because that is what I enjoy the most... if I can't have it... then whats the point?

    While I totally agree that automobiles need better gas mileage, and that pollution needs to be reduced, it should not come at my expence, but at the expense of the companys that produce the products and pollutants.
  43. brokeback mountain from toronto, Canada writes: i really don't care about my kid's future, 'cause i dont plan on having any kids... it's enough to worry about in this life time.. why bring more people to this world, if have don't have enough resources to support them??? use some logic! there is always shortage of food, energy, diseases, etc.. this world would be a better place if we can reduce our population!
  44. John Connor from Canada writes: Kevin Dooley from Canada writes: What's that you say? You live more than 50 miles from your place of work? Well that's poor planning, isn't it? Maybe your office needs to investigate telecommuting options.

    Maybe you should remove your head from a certain body cavity before making such impudent remarks. Or get a job, I don't care in which order.

    Idiot.
  45. Jeff Pritchard from Canada writes: brokeback mountain from toronto, Canada writes: i really don't care about my kid's future, 'cause i dont plan on having any kids... it's enough to worry about in this life time.. why bring more people to this world, if have don't have enough resources to support them??? use some logic! there is always shortage of food, energy, diseases, etc.. this world would be a better place if we can reduce our population!

    >>>

    Unfortunately it is largely those people who are not rational enough to formulate that thought that are having the most kids, so your point is a moot one.
  46. Journey Man from Ontario, Canada writes: More people need to consider getting a small motorcycle or scooter for commuting. Last year, using my 400cc motorcyle for my 20km commute (one way) I figure I saved about 450 litres of fuel. (Because I'm a wimp I only used it about 60% of the time, but I could probably push that up to 80% if I don't melt in the rain, and I could also take a long bus-ride if in the snow/ice season.)

    If a large percentage of commuters did this, imagine the energy/fuel/environmental benifits! The irony is that higher fuel prices will force people to try these sorts of alternatives.
  47. Wasabi Jones from Canada writes: Is this Soviet Russia?? Some of the ideas on this board re: raising gas prices to $5 plus per litre is frightening. People want to limit freedom of movement in Canada? People want people to stop having kids because its bad for the environment?! Give me a break! Why don't we all just give up our cars and commit mass suicide? That would be really good for the environment. Even better idea: why don't the eco-moralists do it first.
  48. Charlotte Gabrielle from Ottawa, Canada writes: The cheap oil party is over folks. Might be a bit of a hangover.
  49. True Canadian from Hamilton, Canada writes: Joe Calgarian from Canada writes: Hmmm maybe I can power my car with hot air from all the treehuggers...
    ***
    well Joe.. check this site out www.aircar.com :)
  50. robert F from Toronto, Canada writes: Great news, I hope it reaches this level as it seems the only way to deter people from driving for non-essential reasons, and perhaps consider transit or car pooling.

    Single drivers cruising into work in their SUV every day are no different then people smoking in a nursery. They pollute and waste resources for their lifestyle. In the past it was fine, there was lots of oil and it was cheap, but as with everything cheap, it eventually runs out and everyone wants it.

    I especially hope car companies learn from their folly and move towards truly electric cars, and not the hybrid 'scam' they're peddling to ensure their parts industry keeps ticking. With higher gas prices, come even less incentive to buy one of these clunkers. The drain of a car on your family income is so much, that you could indeed take your family out to eat every day of the year, and or take taxis each day, and still not use as much money!

  51. Pickman's Modem from Canada writes: Arg. My post -- it was pulled.

    Instead of thinking about buying a hybrid or scooter, why not consider not driving at all? Honestly, for most people who live in a city public transport is a viable option. I haven't owned a car for years, and the money a person saves is just incredible. Insurance gas general upkeep on those beasts is a huge drain on a person's resources.

    A lot of the posts here really underline the basic problem with conservation and cutting back on what we consume. The idea is great, so long as I don't have to, you know, do anything. So, yeah -- go hop on your quad or snowmobile and help us pi$$ away our resources.
  52. Eric Hunter from Kingsville, Canada writes: Everybody Panic!!!! More manipulation by the people that make money from it... /boggle
  53. robert F from Toronto, Canada writes: Hopefully the market freaks out there will see how the system can turn around and consume itself.

    The oil companies wanted higher oil prices, much of it based on speculation. This in turn is hurting the car industry as people start to abandon these 'money sinks' in favour of other ways to work and back, and around town.

    Thus down goes the car purchases, down goes the economy, down goes oil purchases, but sadly because of the 'world market' the price won't change unless worldwide there is a cut in use...which...lol...won't happen.

    So be prepared for a Canada with a hurt economy, high oil prices, and cars nobody wants. Unless the car people finally get off their asses and bring in true electric for run about cars in town.

    Anyone who chooses to live the in the wastelands of suburbia, buy a car, and sink 30-40% of their income just to get to work and make an income...are fools. If you take a job in your own town, at a 30% cut in pay, you'd make the same!
  54. True Canadian from Hamilton, Canada writes: Sorry Joe, my mistake! it is www.theaircar.com
  55. robert F from Toronto, Canada writes: Pickman's Modem- it is amazing how much you can save! Not driving allows for frequent, if not daily dining out, taxis can be used with abandon as well.

    It costs $7,400 a year to own and operate a single vehicle (on average) in Canada. That's $142 a week you could spend on food, drinks, everything else.

    And most people own cars well above their income, so that $7400 is probably much higher.
  56. Eric Hunter from Kingsville, Canada writes: Robert F: You're an idiot. If everyone COULD do that, they would. Jobs aren't there for everyone. Not everyone goes for the highest paying job and lives in the 'wastelands of suburbia' just for a cheaper house... some do it JUST TO HAVE A JOB.
  57. Pickman's Modem from Canada writes: Eric Hunter from Kingsville, Canada writes:... some do it JUST TO HAVE A JOB.

    ----

    I don't know what your specific situation is (and don't care, really) but I am willing to bet that the amount of jobs in 'the city' vs 'the 'burbs' is pretty heavily weighted towards whatever city you care to name.

    Of course, not everyone is able to do without a car. I think that most of them live in rural areas and have very different jobs than the rest of us. I bet that the amount of people who lived in major urban centers in Canada who could do without a car (with only minor difficulties) for a week is much higher than we are willing to consider. I think we have become addicted to the idea of 2 cars per family, and it is pretty clearly not sustainable anymore.
  58. Derek Holtom from Swan River, Canada writes: this will hurt rural Canada and the poor the most, as everything will cost more.
    dramatically increased the personal exemption might help. and maybe a rural living allowance credit.
    I also agree on tolls in and around major highways and cities.
  59. Joe Calgarian from Calgary, Canada writes: Does this mean I shouldn't go out and buy that 400hp V8 powered sports car that my neighbor has? At zero percent financing are you crazy? Dealership here I come! Vroom! Vroom!
  60. Ray S from Canada writes: If Rubin says $1.50. I'm shorting it. He has been consistently on the wrong side of most things he predicts.
  61. Eric Hunter from Kingsville, Canada writes: Joe Calgarian: Depends what he has... not all 400HP v8's get horrible gas mileage...
  62. Bobby the K from Bogarttown, Canada writes: This will be what it takes to get people to consume less, and put sustained interest and resources into alternatives.

    Including new ideas for urban planning, mass transit etc.

    The public will be required to change wasteful habits and think creatively.

    Why are so many parents forced to drive their children all over the place just to play minor sports and other activities?

    There can be a wide silver lining to the dark cloud of higher gas prices.

    You will even get to use more of the most valuable thing you've got - your time.
  63. Ryan Fillmore from Sackville, Canada writes: The only ones who should have to comprimise and pay for all of this is the corporate world. They steal our natural resources under the guise of 'free markets' and 'consumerism'. But really its just theft of societies resources for the betterment of 1% of the world population.

    Its high time to force the corporations to clean up their act, or loose all their access and operating privledges to the natural resources in this country.
  64. Broken Record from Victoria, B.C., Canada writes: Let it go to $4 a litre, just open up our car market (Buzz Hargrove will spin in his grave but who cares) to real competition so I can buy a car that gets 80 mpg like my cousins in the Netherlands can right now. Europeans and the Japanese have transportation alternatives. What do we have? It's not fair to have very high fuel prices yet ban most very efficient cars from the country, as Transport Canada currently does, and at the same time have no plans whatsoever for developing a decent passenger rail network or local transit improvements. Canadians should all travel abroad to see how backward we really are compared to the feel-good twaddle we are fed here at home. The rest of the world gets on with solving problems; Canadians just talk about it then do nothing, claiming it's somebody else's problem and 'those things work over there but they won't work here' but how do we know when we never even bother to try?
  65. A reader from Canada writes: Isn't CIBC the same bank that thought they were the wisest of all the five major banks when they invested heavily in ABCP's? Someone should tell them they lost all of their credibility with their last move. Because of their absolute stupidity all of us are paying the price. I guess we should also listen attentively to the pundits at National Bank as well as they like CIBC are great predictors of the future.
  66. Ron Paul for Repub. nomination He can fix the US thus the world from Great White North, Canada writes: Luckily I live in the city and thus, i can take public transport so wether its 1.50 or not, for work, it's dealable. However, my significant other works outside the city and has to drive there 'cause public transport is not convenient. I'd be willing to guess that there are more peole in such a situation where there is no choice really. So what will companies do when their employees start feeling the pinch in the wallet?

    I don't have an answer really, i'm just curious as to how such a price would weigh on employer's minds and such....
    Nevermind the increased cost for food and other products that rely on land transportation....

    Another nail in the coffin for the middle-class, but i digress.

    One thing for sure though; if they go to Iran, it'll be a heck of a lot higher than 1.50.
  67. Bryan . from Waterloo, Canada writes: There has been quite a bit of speculation with respect to this on CNBC/BNN over the past little bit and from what i have heard Mr. Rubin could well be right. The gasoline contract prices have not moved with the latest move in crude. Thus the crack spread has been compressed - look up a energy refiner, they are all getting nailed. Even given this we are paying $1.03. In mid february when the crack spread normal widens to price in the busy season gas is bound to jump.

    The scary part comes in when you take into account Merrill's expecation for 1.25% cut in interest rates. Gas rising, Gold rising, Soft commodities rising, economy tanking. Sounds like stag flation to me
  68. Jim Hester from Canada writes: Higher oil prices are a good thing if you are concerned about a cleaner environment. In a free market system the higher price of gas will drive consumption down and increase the demand for alternatives. Roll on $2.00 a litre.
  69. Joe Calgarian from Calgary, Canada writes: Eric, while a V8 with MDS or whatever they call it is better, I would doubt it would qualify as fuel efficient. That said, I don't know why all cars don't have that technology, furthermore I don't know why all cars don't have a battery based starter like the Hybrids do so that there's no idling. Finally as I've often argued before if city planners actually did some 'planning' we wouldn't have surban sprawl unabated and it wouldn't cost you over a milion dollars to live near dowtown which is where I think the real problem lies, but no, it's much easier to put the responsibilty on the average joe and force them to spend even more money to get a more efficient car to commute on the same inefficient commute to work.
  70. bill k from toronto, Canada writes: If the FED and Canada lower interest rates to save the banks with a cheap money bail out while we lose our shirts in buying power. $1.50 gas and depression here we come.
  71. Pierre Dionne from Toronto, Canada writes: A Reader, I challenged you before (I think): how are we all paying for CIBC's stupidity? Stock owners are hurting now, but the stock will bounce (if you don't sell in a panic). Otherwise, not much has changed in my life because of CIBC's alleged stupidity.

    Price of gas? It's just supply and demand, and I think it will hit $1.50 before 2012. But I can deal with it. I take public transit from the 'burbs, while my wife works close to home. The reason we bought a house in the burbs was to be close to work, but I since changed job and work downtown (you see Robert, some of us are trying!). Still, I don't think we spend more than $80/month on gas. So if it goes up 50%, or even double (which will also happen eventually), we're still OK... Although I shudder to think of the impact on the price of food and public transit.
  72. Yellow Submariner from Canada writes:

    Anyone who thinks it'll take until 2012 for gasoline to hit $1.50 is very optimistic ... I'd bet it would hit that by summer 2010.

    Having almost unlimited access to oil for 50 years or more, we've enjoyed the equivalence of 9 slaves per household, doing work we used to have to do manually. That's given us a high standard of living. Those oil-slaves are soon gone folks, and our standard of living is going to take the first permanent dive in all of history ... until we figure out how to control fusion, which may never happen.

    I'm glad I was born in th '50's - we've had the most easy life any generation's ever had, or will have.
  73. Eric Hunter from Kingsville, Canada writes: A C5 Corvette gets in the 30 MPG range on the highway. Most V8's don't get that kind of mileage however. The Corvette is about the only one that the engineers actually tried to get good mileage as well as good performance.

    The problem with the whole 'Live close to work' argument that Robert brings up as well is jobs are no longer 30 year jobs, then retire (though I've had mine for 11 years so far.... knock on wood). Companies aren't loyal to employees, and employees aren't loyal to companies. Moving every 2-3 years is very expensive, if you can't find a job where you live when your company decides to get rid of you, moves, or gets sold and closes your office.

    And like I said in my original comment... a lot of this is just media hype, financial hype by the people that make lots of money by keeping the price moving up. 'Everybody panic!'
  74. Kothar Rumbleg from Canada writes: Yeah and this is from CIBC of all things!
  75. Don Quixote from the Banana Belt, Canada writes: Just back from a Christmas stay in Australia:
    With the Aussi Dollar just about 7-10% shy of the Loonie:
    Pump prices of Aus%1.38 for regular Petrol and Aus$1.48 were the rule.
    Digging the sand trails in the Fraser Island Jungle sets you back Aus$1.91
    and when you do that with the prevailing large Toyota Land Cruisers, it easily cost you Aus$150 to $200 per fill-up.
    Do the people drive any slower in Cairns or Brisbane for that matter?
    Nay, they are a sporty set of fellas.
    You know what, they got diesels, even the really saving Peugeot cars and the large big six powered Toyota Land Cruiser with full 4 wheel drive used about the same amount of Diesel Fuel than my little gasoline powered RAV4 here in Canada.
    My feel is the higher prices are to come, and with consumer price and income inflation will most likely stay - Jeff Rubin is right to the point.
  76. k p from Nofuncouver, Canada writes: I'm ready for $4.00 a litre.
  77. Brian L from Canada writes: For what its worth my prediction is that in the future, gasoline prices will fluctuate.
  78. Watercooler Pundit from Regina, Canada writes: This is an example of Oil Companies making up for lost revenue due to a reduction in fuel use. No matter what we do, we can't win....except a revolt of sorts. A big one too.
  79. Chicken Little from Halifax, Canada writes: I was fully expecting the oil price to jump the day after the Iranians buzzed the US Navy in the Persian Gulf. I imagine that is why the mullahs ordered it - so they could make more money on their oil sales. What happened ???
  80. L Harder from Canada writes: Sorry, but I'm going to bring up the electric car again. It was available in the late 90's and there is no reason for it not to be available now. Car manufacturers are pushing hybrids because of the profits made from higher maintenance costs. My next new car will be a plug in hybrid.

    For rural folks who need more range, the answer are hybrids and biodiesel. Maybe farmer cooperatives will spring up that make their own biodiesel for their farm machinery.

    I totally agree with posts promoting no car ownership. Unfortunately, our cities are poorly organized so only a solid proportion can organize their lifes to make it possible. City reorganization in important in the long run, but the electric car can be used as a useful short term solution for many.
  81. Hugh Campbell from Canada writes: Pickman's Modem from Canada writes: 'I think we have become addicted to the idea of 2 cars per family, and it is pretty clearly not sustainable anymore.'

    2 cars ATV snowmobile leaf blower electric door opener plasma TV ...

    Ah, life is good.
  82. j berniquer from ontario, Canada writes: I heard on the news yesterday that a slowdown in the U.S. economy would result in lower crude prices due to a downturn in demand. This would make sense since they are still, after all, the leaders in energy consumption.
  83. Ontario Man from Canada writes: Every time there is talk about a carbon tax gas prices go up. I guess the oil companies are listening. If we are willing to pay more for gas they can accomodate that.

    Make sence to me. Why let the gov't haul in the bounty from a carbon tax when you can do the same.
  84. Ron Paul for Repub. nomination He can fix the US thus the world from Great White North, Canada writes: Every time Bush open his mouth, oil goes up :P
  85. Harper is a liar from Canada writes: Remember when Harper and the Conservatives were in Opposition and they wailed for something to be done about gas prices? Well, now that they are hitting record highs, where is Stevie? Silent. And on his knees for the oil companies. What a disgrace.

    It's time to investigate the collusion and price fixing among big oil and big gas. What's more, perhaps Trudeau was right and we should have kept oil nationalized.
  86. Will Alexander from What's Harper going to do about it, Canada writes: The solution is simple. lessen the demand and the price will drop. When Harper gets off his knees (and elbows) for big oil and starts funding better urban public transit, who cares what gas costs per litre? We'll be getting where we need to go at a fair price and lessening urban smog and GHGs.

    Never happen though. It woudl require 'leadership' not just a spending spree to buy votes. Sorry, harpercrite, you're no better than the Fiberals in that dept.
  87. Crusty Curmudgeon from Ottawa, Canada writes: So, instead of doing anything substantive like writing your MPs and demanding an energy policy and a responsible govt. controlled oil company, you folks simply write your little rant in this forum, and then immediately proceed to bend over and take another one from the CEOs.

    Well, I suppose its better than taking another one from elected officials (or is it)?
  88. Will Alexander from What's Harper going to do about it, Canada writes: Harper is a liar from Canada: Exactly on the mark.

    Harpercrite now has the opportunity to do EVERYTHING that he criticized the Liberals for NOT doing. Where's the Accountable and Responsible Govn't we werre promised? I guess Harper's too busy trying to buy votes or rig the electoral districts in his favour to give a sh!t about Canadians.
  89. John Stanton from Canada writes: he is dreaming ...they already predicted this. If/when the economy takes a tumble, oil will plumment along with gas.
  90. Will Alexander from What's Harper going to do about it, Canada writes: Crusty Curmudgeon from Ottawa: What possible diffrerence will it make? Our MPs are Cabana Boys (and Girls) for the Omnipotent Lord Harper. They must remain well-heeled and obedient.
  91. Mike Optis from Victoria, BC, writes: $1.50 is a good start, but we should be paying at least $2.00 per litre if we really want to start seeing less cars on roads. Western Europe has been paying $2.00 and higher for decades. Why should we be any different?
  92. Vote NDP in the next federal/provincial election from Toronto, Canada writes: $1.50 gas prices is unacceptable and a movement to get governments to control the prices will grow. Former Ontario PC premier Bill Davis froze gas prices for 90 days during 1974. I supported this decision despite different political parties.

    I understand that demand is high will supply is tight. However, high prices might curb consumption in the short term but people will demand higher wages and prices to make up for the increases. Remember when gas prices went up in summer of 1999, the long term effect was that wages and prices went up and aren't likely to come back down. High gas prices mean one thing only! PROFITING! This would badly hurt our low, middle and fixed income earners which will trigger mass social unrest whether protests, crime, drug use, boycotts etc...

    We need to reduce oil consumption. I support his as well. No excuses and there is 100s of ways to do this whether free public transportation, hybrids etc....

    In the end, if gas prices are continuing to increase then I want a law passed immediately forcing those gas stations to reduce prices to no higher than a $1.00 a litre.
  93. Rudy Krueger from High River, Canada writes: Nobody can be so much as modestly certain about the future circumstances that might cause prices of commodities to go up or down. Oil price forecasts nearly always state that the future will be more of what is happening on the particular day when the forecast is made. Many statistical studies have been made of this and it is a simple fact. We do know that the industry faces three historically unusual circumstances. First, the accumulation of data upon which exploration / finding is based, has increased exponentially as has our technical ability to analyze it. Still no strategically significant discoveries have been made for a couple of decades. Second, newly sovreign nations have found other agendas besides greed. If the USA were successful in breeding their kind of democracy everywhere it would result in local peoples making resource rape much more difficult - hence exacerbating market shortages. Finally the goodness of materiality (the modern version of 'the pursuit of happiness') is holding up energy-burning toys in front of 3 billion more people than 10 years ago. They will have their rewards. Forget the forecasts and look at the fundamentals. We are heading for fuel prices that are higher than Europe has already - already more than the $1.50 being predicted in this article. But then it is only high prices that lead to conservation. Conservation leads to changes in values and to cleaner air. I saw and heard a Lexus full-sized hybrid last week. What a rush!. The technology is close to art. It is only energy-related threats that led to this exciting kind of development. I really look forward to it myself.
  94. Jason Mote from Toronto, writes: Who do you believe, one article says the price will skyrocket, the next suggest it will plummet in 2008 thanks to softening demand.

    Face it, most investors are only marginally intelligent sheep following the herd that influences the price of oil. Supply and demand, geopolitical concerns and stocks are just indicators that stimulate the halfwits that speculate on it. The price of oil should instead be set by a chimpazee and a dart board.
  95. brokeback mountain from toronto, Canada writes: it is interesting to note that most economists think that people's salaries are indexed to inflation, in reality, that's not really the case.. I wonder how many people here get a raise based on that...did your boss go to you and say.. hmmm the inflation is 1.9%, I will give u 1.9% increase...
    In reality, your boss usually say: ' well, you are doing the same thing as last year, so you get this..' or 'well, you have done a great job, and have constantly ask for more work, so we will give you this', or you go to your boss and said' I have a job offer, and they give me $10k more to do the same job, are you going to match?'
  96. Jean Malice from Calgary, Canada writes: While Canadians Tar the Oil Sands, Indians drive their Tata! Taratata!
  97. can I vote again from around-Kingston, Canada writes: 1.50 is still cheap
    • Posted 10/01/08 at 2:06 PM EST |