Phew! It looks like we got through that one!
It also looks like the pump price panic has been wrestled into submission.
But thanks to who or what?
Certainly not all provinces were proactive in reducing road taxes, albeit for a period of “un-certaintude,” that will certainly come back and bite us in one way or another. This contrasts with our inactive federal leadership who seem more interested in catching the next plane to the next summit of summiteers.
The federal excise tax remains untouched as does the GST. As for the carbon tax? Well, that will just stay on course. A ship without a captain.
When I think of it, if the plan was to get gasoline and refined product prices down, then lowering taxes will have had the opposite effect because it increased demand and slowly upped pump prices.
The action by the leader south of the border is showing the political will, while here in the north it’s a – will not.
As I have discussed in previous reports, accessing the Strategic Petroleum Reserve (SPR), and pleading with OPEC members to increase oil production has calmed the nerves of the Wall Street futures traders and gradually lowered prices. In fact, the latest U.S. inventory report shows an increase in all levels of crude, gasoline, and the distillate family of refined products.
Even more noticeable is the obvious slowdown in rate of demand increase of the holiday influenced fuels – gasoline, and jet fuel. Refinery runs are at top cog with the national average now at 95% capacity.
But the lower prices we are seeing today are not solely due to political pressure, especially by President Joe Biden.
All that was really needed was for the banking fraternity to crank up interest rates to quell inflation that is making products and services so expensive. This is giving consumers pause for thought as they think about whether this or that financial decision is worth the gamble.
And that’s where we are now.
Let’s forget about that holiday for the time being.
Let’s keep the RV and the two cars in the driveway.
Let’s leave the lost luggage at the airport.
Let’s hunker down and ride it all out – again.
Seat belts on because this could get bumpy.
– Roger McKnight – B.Sc., Senior Petroleum Analyst
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