Gas prices in Canada are soaring even though the price of oil is well below recent highs.
In order to help Canadians know what they should be paying for gas, the CCPA developed an online gasoline price gouge meter using calculations by Hugh Mackenzie, based on his 2007 analysis, Gas Price Gouge: The Sequel.
According to Hugh's latest calculations, the average price gouge this week (May 12, 2011) is 25 cents/litre, up from 14 cents/litre two weeks ago. One cent per litre across Canada generates excess profits at a rate of $1 million per day. So an excess profit of 25 cents/litre is generating $25 million in excess profit every day—$9.125 billion a year. Click here to read more.
The CCPA’s Gas Gouge Meter measures in real time the difference between current retail prices in twenty cities in Canada and what would be a normal price, based on current crude oil prices, current exchange rates and normal profit margins for gasoline refining, distribution and marketing.
Users simply type in the retail price they are paying and select the closest city from the list of cities on the site. The meter does all the calculations, estimates how much gas should cost, and lets users know how much they’re being overcharged.