Fuel price update

Rebel · Post by **Rebel** » Thu Sep 01, 2005 11:53 am

Fuel price update.

Fuel is our second largest operating expense after salaries and wages and as the price of oil continues to spiral upward, we need to be increasingly vigilant about keeping our costs down in all areas of the operation. So that we remain sensitive to this critical cost component of our operation, The Daily will now quote the previous day’s price of crude oil from the West Texas Intermediate (WTI) index – WTI is a type of crude oil used as a benchmark in oil pricing and the underlying commodity of New York Mercantile Exchange's oil futures. This is usually the type referenced in Western news reports about oil prices, alongside North Sea Brent crude. To arrive at our in-plane fuel cost we should top up this figure by $25 US for refining, distribution, marketing, etc. Every so often, even when the WTI spot prices decline, our in-plane costs remain high because of significant bottle-necks on the refining and distribution fronts.
Yesterday, at the close of trading on the New York Mercantile Exchange, oil on the WTI index was priced at $68 US per barrel.

gelbisch · Post by **gelbisch** » Fri Sep 02, 2005 7:30 pm

Well, I paid $1.349 in southern Ontario this afternoon. I am officially disgusted. I remember hearing speculation that it'd get up to $1.50 and cringing... not so far from where we are now. And the latest I've heard is that it'll get up to $2.00/L before it gets any better.

Yikes! I'd better get back to the drawing board re. my hamster-driven car.

What's it costing in Europe these days? Anyone seen/heard?

. . · Post by **. .** » Sat Sep 03, 2005 7:43 pm

in the netherlands 1.50 euro/L == $2.23 CAD
england .91GBP/L == $1.99 CAD

Looks like we still have it made in the shade here.

haligoner · Post by **haligoner** » Sat Sep 03, 2005 8:23 pm

don't forget...the currency conversion is somewhat meaningless unless the Dutch or the Brits receive their salaries in Canadian dollars, or pay for their gas in Canadian dollars..

My experience has been that prices there are about the same here, except in their native currencies ie a fast-food meal that costs $5 here costs 5 Euros there...so the fuel there is not really that much more expensive than here, in terms of their purchasing power.

Hope that made sense...what I mean is if you make 34,000GBP/year and pay .91GBP/l for your fuel, you're paying "less" than the Canadian Jazz pilot (sorry couldn't resist!) making 34,000 CDN/year and paying 1.23CDN/l...

And the kicker is that the geography of say, the UK, is just slightly smaller than that of Canada...

...methinks they have it easier than us in the balance!

natedog · Post by **natedog** » Sun Sep 04, 2005 7:00 am

gas is 110.9 today in my neck of the woods, which isn't to bad compared to the rest of the the country, it was 135.9 in south ON yesterday talking to the family back there, I heard it was 1.99L up in cottage country in ON, thats crap! just in time for the long weekend

prop2jet · Post by **prop2jet** » Sun Sep 04, 2005 9:09 am

The various governments don't seem to concerned given the amount of extra cash they are raking in by way of taxes!

EI-EIO · Post by **EI-EIO** » Sun Sep 04, 2005 9:49 am

The other thing about gas in Europe is it is likely to be higher octane.

In Ireland standard unleaded is 95oct, premium 98!

Jaques Strappe · Post by **Jaques Strappe** » Sun Sep 04, 2005 10:06 am

If there is an actual crisis, then why is it that gas around the corner can be 20 cents cheaper? $1.35/liter at one place, then two blocks over, $1.14/liter both Shell stations.

Why is my stock in petoleum going through the roof? I am actually making money because of this and I am a small time investor. Imagine how much the Bush family is making right now!

Hmmmm ...........maybe thats why he is being so slow to help........hmmmm Naaaahhh......he is just an idiot.

gelbisch · Post by **gelbisch** » Sun Sep 04, 2005 10:19 am

This is a pretty eighth-hand reference, but my old man was saying something about an article he read predicting that prices will halve again in the future. (Not sure what the timeline was.) I don't know if it's any crisis we're experiencing... but I bet the oil barons all have big grins on their faces.

Most of all, I'm just still disgusted with our gov't. (What else is new?) Would it kill them to back off on the gas taxes just a BIT, to help ease the pain for all us poor suckas? No, of course not, 'cause we work for them and not the other way around.

double-j · Post by **double-j** » Sun Sep 04, 2005 10:46 am

Maybe I was asleep at the switch but has AC hedged any of their fuel?

jj

Jaques Strappe · Post by **Jaques Strappe** » Sun Sep 04, 2005 3:15 pm

No I don't think so.

They were unable to while in CCAA and I don't think they did when they exited CCAA either.

double-j · Post by **double-j** » Sun Sep 04, 2005 6:50 pm

thanks JS.

cheers,

jj