CCPA Research Associate Hugh Mackenzie has done an analysis of current gas prices (using our online Gas Price Gouge Meter) and finds:
Although the average price in these major centres across Canada is roughly the same today as it was two weeks ago – $1.33 on April 29; $1.35 today – the industry’s failure to pass on the savings resulting from crude oil price changes and exchange rate moves is reflected in the fact that the average excess profit has jumped from 14 cents per litre on April 29 to 25 cents per litre on May 12 [based on normal production costs, today’s crude oil price, today’s exchange rates, and taking into account all taxes].
The biggest gaps – in the 30 cent per litre range – are in Montreal and in western Canada; the smallest gaps – in the 15-20 cent range – are in Ottawa and in BC outside the lower mainland.
To put these numbers in perspective, one cent per litre across Canada generates excess profits at a rate of $1 million per day. So an excess profit of 25 cents per litre is generating $25 million in excess profit every day – $9.125 billion a year.Click here to read the full analysis, which includes a table summarizing the results of Hugh's calculations in major urban areas across Canada, comparing the figures for April 29 with today’s numbers.
Click here to visit our Gas Price Gouge Meter.