Friday, 2 November 2012

Go Figure Department: Gas Shortages in New York/New Jersey But Rises Low in Montreal

If you ever wondered why or how gasoline prices are determined, your questions should get deeper this week.  We've been told that spikes in prices comes from shortages:  shutting down production at various drilling operatons because of hurricans has been given in the past as a reason for summertime increases.

Over the last couple of weeks prices in Montreal have been as high as $1.43 a litre--not as high in the summer of 2008, but almost.  Then came Sandy, and you'd think the price would continue to rise.  Certainly The New York Times notes this morning that a scarcity of gasoline in the greater New York agglomeration is making life more difficult for people trying to cope with Sandy's aftermath.

But, hey, last night the price here was around $1.26  a litre!  Makes no sense at all, even if you take into considertion  the fact that Montreal and New York aren't the same market. 

And last week I bought gas at $1.36 a litre, thinking I was doing well.  We haven't driven much since then, so there was no point in trying to fill up yesterday, one of the ironies of not driving much being that sometimes you can't take advantage of a bargain.

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