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It’s all over the news Tuesday that gas prices went sharply up all of a sudden. The CAA says there’s no reason for it.
GC, Kevin, Stefan, and 3 others are discussing. Toggle Comments
A viable substitute to tolls!
Except that tolls should be money going towards the public, not away from it.
Ant6n, some of the money goes to the public since the tax is applied on top of the sale price, no?
Is it? There’s sales taxes, yes. But that’s only a small percentage, most of it still goes to gas companies. There’s also gas taxes, but aren’t those a fixed? The (federal) gas taxes in the States (~20c/gallon) haven’t gone up since the early nineties, so they are actually decreasing in real values, as well as relative to the gas price.
raising gas prices to counter flexible demand (i.e. weekends) is probably the cheapest and most effective system of limiting car use in the montreal area (imagine what a kilometrage system, implement in quebec, would cost).
the problem here is that there is industry collusion, which is clearly not looked into, or ignored with the help of brown envelopes, and only the private sector is profiting from it, since gas tax in quebec is a fixed amount and not a percentage of the retail price.
Montrealers pay more for gas than the rest of the country for 2 reasons
1) we import our oil from overseas
2) taxes make up nearly 37% of the price at the pump.
Not that this is a bad thing…
But I don’t think any individual price hike has an effect on driving. Gouging people on a Friday isn’t going to stop them from making any given weekend trip because they’ve already made those plans.
It does have an effect on overall lifestyle charges: Quebecers buy smaller, more fuel-efficient cars than in the rest of North America.
Do we pay more than “the rest of the country”, though? Last time I was in NB and NS, the prices were higher there. Has that changed?
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