Gas prices: A broken record
Gas prices: A broken record
StatsCan analyst says Montrealers pay more than elsewhere in Canada
LYNN MOORE
The Gazette
August 10, 2005
CREDIT: MARCOS TOWNSEND, THE GAZETTE
Though gas prices have broken $1.08 mark, rush hour remains as busy as always.
Canadian records are being smashed as retail gas prices climb, especially in Montreal where consumers generally pay more than the national average.
Until recent geopolitical events, including the continuing war on terrorism and political uncertainty in Saudi Arabia, spooked the market, causing crude oil prices to soar - and invigorating speculators who toy with oil futures - the record for retail Canadian gas prices was sent in 1985.
The average pump price for regular unleaded in 1985 was 53.9 cents, according to Statistics Canada. Adjusted for inflation and set in June 2005 dollars, that price is 91.4 cents.
Yesterday, according to gasbuddy.com, a Web site that tracks gas prices across North America, the average pump price in Canada was 97.89 cents a litre.
The record for Montreal retail gas prices was set back in 1982 when pump prices averaged 53.5 cents a litre or 102.9 cents a litres in June 2005 dollars.
At the request of The Gazette, Statistics Canada analyst Charles Berube yesterday crunched gas price statistics dating to 1957, pegging them to June 2005 dollars.
His findings run counter to the popular notion that Canadian prices peaked in the mid-'70s,
directly after the 1974 oil embargo after the Arab-Israeli war and before Iran cut oil exports from 1979 through 1981.
But they support Montrealers' belief we pay more than our Canadian cousins. Adjusted for inflation or not, the average annual pump prices in Montreal were, with few exceptions, higher than the Canadian average.
The Statistics Canada figures, which were calculated on an annual basis until the beginning of this year, also show prices at Canadian pumps do not move in lock step with U.S. prices.
U.S. drivers paid more at the pumps in 1981 than they are paying now, according to the U.S. Department of Energy's statistical agency.
U.S. consumers paid an average of $3.108/10 U.S. a gallon in March 1981, once inflation is factored into the equation, according to a report that is broken down by months.
Monday, the average U.S. price at the pumps was about $2.37 a gallon, a spokesperson for the Energy Information Administration said yesterday.
Oil prices eased yesterday after briefly climbing to a new high above $64 U.S. a barrel.
The market was still on edge about heightened security in Saudi Arabia and a recent rash of refinery outages in the United States, but it is not unusual for traders to take some profits after significant runups.
Light sweet crude fell 87 cents to settle at $63.07 a barrel on the New York Mercantile Exchange, retreating from an intra-day high of $64.27. The contract closed at $63.94 a barrel in New York on Monday - the peak close since Nymex trading began in 1983.
"Right now everybody is trying to play it safe and take home the money they made," said oil analyst Carl Larry at Barclays Capital in New York.
But he said strong demand for gasoline and other fuels, combined with tight global supplies, is a recipe for sustained higher prices.
Over the Top
Even adjusted for inflation, gas prices are higher now than they've ever been
National Average Montreal Average
1985 91.4 1982 102.9
Now 97.89 Now 108.4