Tuesday, June 26, 2007

gasoline prices are great...aren't they?

Listening to people complain about gasoline prices can get a little irritating. Especially since many people who complain about this are the same people who drive SUVs and pick up trucks, and do not have the necessity to do so. I can see if you own a business where you require one, but if you are getting yourself to work and back each day in a V8 4 wheel drive GMC Sierra you may as well have your pay cheque transferred directly to Petro Canada. Maybe try living in Europe, we have had it good for a long while.

I partially know this from experience as I used to drive a 97 Ford Ranger, which is a smaller truck, and would often walk away from the pumps frustrated after having paid $70 or $80 to fill it up. Recently I found out that this was nothing when I rented a full size pick up truck for the day to transport my demolished deck. I filled the rental back up at the end of an exhausting day; I had only used slightly more than 1/4 tank, and I rung up the pump to $54. This truck would have cost about $150 to fill up at that day's price, which was about one month ago today. Compare that to my 2006 Toyota Matrix which runs me about $40 for a full tank.

Wow.......that would not go over well with me, but I may be a little frugal, but I would not enjoy paying over $8,000 / annually on gasoline just for the pleasure of driving one of these things around with nothing in the box.

Personally higher gas prices don't really bother me. We drive 2 Toyotas that get 32 mpg (avg.) and 36 mpg (avg.), and our monthly gas bill is about $220. Also, we are both well compensated for our out of town kilometers for work. Gas mileage was one of the reasons we got rid of our older vehicles, as well as one of the reasons we selected the Matrix and Yaris.

I also own shares of Petro Canada (PCA), so I am slightly hedged against rising gas prices. I feel a lot better paying my gas bill to Petro Canada when I know that they are growing the value of my investment over time, as the rest of the world scorns them as thieves and villains.


FourPillars said...

Excellent point!

I think sometimes people overdo the reaction to gasoline because the price is so visible.


Nurse B, 911 said...

I remember on a vacation to Australia in 2005, some europeans I travelled with were astonished that I drove a 1.7L car which by my own standards is quite small and economical.

Anonymous said...

Join a co-op investor99. The Calgary one returned 9.5cents/L to its members. Plus the actual petrol is manufactured at a refinery probably owned by one of the big Canadian refiners you speak of.

Another good alternative is diesel. A diesel car can cut your fuel bills in half (cheaper fuel + more efficient). The selection of diesel cars is limited in Canada, but as time goes on...

Dirk (Amsterdam) said...

Good point,

gasoline prices in europe are much higher than Canada, I currently pay 70 euro for a full tank (100 $ CAD), but than again the usage is only 7l/100km, which is probably a lot better than the average car in N-America.

My guess is that fuel for car will take a smaller portion of the worlds crude production. However crude demand will grow over the coming years and than having PCA stocks wil work out really well.

fuel additive said...

I agree that there is way to much complaining about the prices. Yes they're higher than they used to be, and if it's cause strain on your budget then just make some adjustments!