Do you know why gasoline prices vary across Canada? According to Natural Resources Canada, price differences between cities involve four key factors: (1) taxes (2) competition and consumer choice (3) the amount sold (4) the type and location of stations.
1) Fixed tax – Provincial taxes range from 6.2 cents per litre in the Yukon to 16.5 cents per litre in Newfoundland and Labrador. Sales Tax – The Goods and Services Tax (GST) is calculated at 5% on all fuel products, including gasoline. Also, some provinces add an additional sales tax on petroleum products.
2) Station owners are competing for attention as drivers make their buying decisions from behind the wheel. Unlike other retailers, gas stations advertise their prices on big signs along roadways and at intersections to attract customers. When a station in an area lowers its price, other stations typically match the price – by lowering what’s called their retail margin.
3) A station in a smaller community or neighbourhood with fewer sales may have to charge a higher price to cover its fixed operating costs. Plus, it may not be eligible for volume discounts from gasoline wholesalers. In communities where the station owners are satisfied with how much they sell, consumers tend to see more stable prices and fewer price wars.
4) Stations that are further away from their suppliers have to pay higher transportation costs. They may pass on these costs to their customers in the form of higher gasoline prices.
But I figured there's another factor to be considered, such as driver's radical behavior. For I have witnessed many drivers in the GTA, step on the exhilarator in a very harsh manner as if they're racing in the Monaco Grand Prix. How far they can go? Less than 30 meters they have to stop by the traffic light or run down somebody on the road. Perhaps some silly drivers just want to arouse the attention of the pedestrians. Wen Jia Bao for one is the stupidest driver I've ever known, as he likes showing off in a Jeep as if he were driving a Lamborghini.
Get real and get a LP-560 if you can, otherwise try not to pretend you're Sam Hubinette.
