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Home : Top Stories : Gas prices to stay high for summer: energy board

Gas prices to stay high for summer: energy board

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CTV.ca News Staff

Date: Wed. May. 28 2008 9:45 PM ET

Canada's National Energy Board has added its voice to the chorus of authorities predicting high gas prices for the summer months.

According to the board's summer outlook released on Wednesday, the price per barrel of crude oil will average at about US$130 per barrel.

The report says supply and demand will continue to stay closely in sync with each other because of:

  • the annual increase in usage during summer months
  • international conflicts putting supplies at risk
  • weakness of the U.S. dollar, resulting in more investment money flowing into commodities such as oil

With oil prices staying high, prices at the pump are sure to do the same, the group's chairman said in a statement.

"Global oil prices continue to rise," wrote Gaetan Caron. "What happens in world crude oil markets this summer will largely determine the price of gasoline in both Canada and the U.S."

On Wednesday, oil was trading at about US$127 per barrel. Last Thursday, it hit a new record, trading above US$135 for part of the day.

The National Energy Board is an independent government agency accountable to Parliament through the minister of natural resources. The board is responsible for regulating international and inter-provincial aspects of the oil, gas and electric utility industries.

According to the board, oil is not the only commodity with a strong future. Natural gas prices have doubled since last fall and are also expected to continue rising. The board predicts they will hover between US$11 and US$13 per million British thermal units this summer.

That could mean increased electricity costs for regions that rely on natural gas-fired electricity production such as Ontario and Alberta.

Despite the high cost of fuel, the agency believes there will be enough electricity available to meet Canada's needs throughout the summer. The possible exception, says the report, could occur during heat waves, when air conditioners are consuming significantly more power than usual.

Comments are now closed for this story

Paul
said

Gee, I didn't see this one coming.


Roger T
said

Good, this will hopefully stall the economy and the rest of the world if our Gov't don't put caps and regulate the gas prices. No buying cars, no traveling abroad, no long road trips in Ontario or out of Ontario, less spending on retail and on and on it goes.....

Savings comes before the economy!


Jason.
said

Well, let me get my vehicle ready to leave it in the driveway and not take any vacation this summer...

The kids will get to see more of the Gatineau area (Outaouais) on bike then us going to the Maritimes or something like that.


Captialism is killing us...
said

Gosh, what a surprise? We already know that gas will never go down until oil is 100% gone.

Why keeping telling us? Stop that and take action if you think it need to go down.

What a bunch of morons! Wasting our tax money on these Energy Board telling us that prices are to stay high.

Go do something useful.


Aaron in Toronto
said

The whole thing is a joke. Consumers will continue to suffer. Time to call your MP to ask for the elimination of the Federal Surcharge gas tax as we have not have a deficit for 14 yrs. Any help to reduce the cost would delay the recession in Canada.


Logan
said

This should come as no surprise to anyone. Traditionally the gas prices have usually been higher in summer with more people on the go. I wonder if that will hold true this year with many people opting for "Staycations".

A term, funnily enough, I first heard on "Corner Gas". Maybe Brent had the right idea!


Ian R. - Milton
said

So why are natural gas prices rising as well? It isn't costing that much more to pipe the stuff already there - especially in $Alberta$.

The government has in its power to reduce these prices and they know it but no one has the will to do do.

They say they will 'lose' tax money that they never had. Put the taxes back to the $0.76 a litre level and they still will be collecting as much as they did 12-18 months ago!

Shame on their greed!



LDL
said

The price of Oil internationaly and Refined Gas domestically will always be what the market can bear.

This summer I think I'll travel to "Porta-Backyarda" I may stop half way (Fridgeville) to stretch the legs and pick up some alcoholic refreshments for when I reach my destination.


Brad B
said

I've seen in numerous comments in numerous stories about how the government does not want to lower gas prices because it will affect their tax income. Do people realize that the majority of taxes on gas are flat-rate? In Ontario, provincial surcharge is 14.7 cents/litre, and Federal excise tax is 10/litre, whether gas is $.50 or $1.50. The only %-based tax is with GST, which is really only about 1/4 of the total tax. Thus, that excuse doesn't wash.
Is there a problem? Are prices too high and need to be regulated? Sure. Is it the tax income preventing the government from doing it? I doubt it.


You'll Hate me for this...but
said

Is it any surprise that the more we consume a non-renewable resource the more it will cost when the supply starts to go down.

While I'll probably be hated for this next statement by all those morons who drive a large truck or SUV:

Maybe - just maybe the Government of Canada and that of the United States of America should immediately implement once again wartime gas rationing.

Do with a very limited amount of gas - or get your fat butts out of the vehicles and ride a bike.

Don't bother to boo hoo about having to travel 50 miles one way to work. I don't care about the fact that you're so stupid as to put yourself into that predickament in the first place.

Lets start rationing GAS today. 10 litres per month..





Doug BC
said

There is almost nothing the government can do to control the price or either natural gas, or crude oil. There is not only the work market to deal with, but trades agreements with other countries. Some of us are old enough to remember when the late Tr.Hon.P.Trudeau tried to keep gas prices low with his poorly thought out National Energy Plan. It almost caused producing provinces to seek independence.
Over the long term, I do think we need a national strategy. But I doubt our provincial leaders can sit in the same room long enough to do it. But, with all of Canada's resources there should be a plan to pay producing provinces the world price, refine our own crude oil, and reduce the taxes that add 35% to the cost of the product. It would be a huge benefit to our manufacturing sector and likely our tourism industry.
Of course, that would require governments to pay down debt to make room for the taxes to go down. And also huge regulations on auto and industrial emmissions.
But for now, the impact on the economy is just beginning. Our family will go camping in Washington State or Oregon this year. I'm sorry for that, but BC is just unaffordable for us, even though we are well enough off to afford a modest vacation. I really feel for those who can't even do that for their kids.


Norm
said

We just had two back to back holiday weekends in North America and the results were the same... a lot fewer cars on the road for the holidays. The cost of high energy prices won't be readily apparent until next year. I only hope when we see the damage these high costs have done it isn't too late.


GP
said

The price goes down $3/barrel and nothing happens... it goes up $1 and the price at the pump jumps.

The speculators and their partners, the Oil companies, are ripping us off so bad its stupid.

You don't suppose we will ever get a government that will say enough is enough? Ya what ever.


Canadian Kid
said

Nuclear is the answer to electricity consumption. Natural gas and fosil electrical production should be a thing of the past. This reduced consumption would help keep prices managable. Support New Nuclear In Ontario.


W.R.Doolittle
said

Geeze, I remember from my elementary school teacher(80s) about this issue happening. Holy moly, he was right. The morons, unfortunately our us. If anyone dug into understanding what is going on and accually acted on their findings. We, would break this cycle of increase completely. One oil executive from SHELL stated to the US congress that their profits would not be affected if oil prices were between 40 to 65 dollars a barrel. The other Exec. could have shot him for devulging that info. If we wish to stop being suckers, we should be purchasing from only ONE honest provider like that of SHELL. Prices would have to come down because doing that would cause a price war! Too easy it is, but were to busy crying to figure this out. Lets stop whining, and work together. Are we not the consumers that they rely on? Should we not then be the ones who set the standards!! I bet working together we can effectively drop the price, and stop being the MORONS (I'm guilty also), paying that price! There are clearly enough shell gas stations around to supply our needs lets start June 1st, together as ONE VOICE! We have nothing to lose, since were paying that crazy price now anyways, yet everything to gain. Without the consumer no company can dictate and expect to survive!


A H
said

It's sad to see that the oil barons told the Senate that oil should be $60 to $90 a barrel and they can make money at that level. So why aren't we paying that? The multinationls are so big they can put enough pressure on to reduce the cost. That's part of buying. One can demand a lower price. It works with everything else. The trouble is there is no will all the time they can make billion dollar profits every quarter and there are no consequences.

Sadly, Canada also does not have the refining capacity and the States likes to sell us our own gas back at a big profit.

It's time to build a refinery in Canada so we don't need to put the US in the process, put Canada first and then the price might just start coming down.


ken
said

We had two vehicles now we have one, I just sold my SUV and now have a great little car, I'm tired of making these oil types richer and richer, if the Gov't really wanted to help the people of Canada all they have to do is cut the tax attched to the gas price. Oh well, that's life - we better get used to it. Let's keep pouring the money into the pockets of the rich.


Scott Dyson
said

I think the way to go about taking a stand is to actually send more people to the pumps. Get a group of 50 or so cars to go to a gas station and just jam it up for hours. Only buy $2.00 of gas at a time, take your sweet time by washing the windows, and once you've paid get right back in the line. There is no way everyone is going to boycott an entire gas station at once, but it's not hard to gather up a large group of people with cars to just go and clog up a gas station for 6 hours or so. At the end of the day, the gas station will take a very large hit, and there is nothing illegal at all doing it this way. People have to get together and take a stand once and for all!


Craig
said

Ian, your post makes no sense.

1. Natural gas is rising because like all other commodities (gold, oil, coal), people are parking thei money there instead of the failing US dollar. This bids the price up. This is in addition to already high demand.

2. Excise taxes are "per litre" anyways. Thus, they are already at the $0.76 level. Governments do not pull in more excise taxes simply because the price is high.


Bernard Romanycia
said

What are you going to do about it?


George
said

...and a lot of people are left to wonder what Pierre Trudeau was thinking when he talked about a national-owned oil company.
Isn't it time we talked about breaking from this "world economy" because it's just beginning to shoot us in the foot?
I agree with Obama and Clinton. Open NAFTA and take oil out and keep it for ourselves.
Screw OPEC!


Dixie from Alberta
said

Look around your home folks and guess just how many of the items you buy are trucked in using... gas! It's not just driving less, it's doing with much much much less variety in the grocery store, especially in the winter when local produce is not available. If you own a business, it's less customers coming in to purchase your goods. Then this leads to layoffs, closures, bankruptcies... and so on. So it's not just hurting the SUV driver with his lead foot, it hurts the economy, big time! Our country is not set up like the old countries in Europe that centre around small areas. If we want to shop we have to drive; if we need a haircut, we have to drive; the Dr. is not just around the corner from my house, nor the dentist, not the vet. I'm wondering how to carry home a 20lb bag of dog food 2 miles on my 57 year old shoulders. If we want entertainment, there's not a neighbourhood pub or theatre or restaurant right around the corner. Unfortunately over the past decades, all these commerical establishments get pushed further and further away from homes. Most don't work close to home as there are few office towers close to residential subdivisions. Not everyone wants to live 'downtown' amid the pollution and transients. Public transit in this country is a joke and does not meet today's need. A 10 minute drive to work would take me a hour and 3 different buses and I'm not willing to give up another 90 minutes of my already busy day. Gas prices staying high will only hurt Canada big time long term. Luckily here in Alberta we produce the gas, not like Ontario that produces gas guzzlers that no one wants anymore.


PVT
said

I am sure that if the Conservatives took the lead on this issue and slashed federal taxes on petrol products, they would get a majority gov't next election. Smarten up Stephen Harper - this is your chance to get the majority you have been after for years!

Alberta Roger
said

Well some people wanted a carbon tax. I guess you could say we have one now. The high cost of fuel will keep more people traveling less and spending less that is already being noticed.
Big holiday campers, SUVs for sale pretty well says it all. Checked into Global gas prices as follows; Netherlands pays $6.48 US/ gal. and UK pays $5.79/gal US and last but not least Venszuela pays big .12 cents US/gal. Here in Alberta we pay $4.90 per gallon.
I think many people will be walking to work or riding a bike.
Correct me if I am wrong.


Steve
said

How our Country has a net import for oil is beyond me. We have the second largest oil supply in the world. We export more oil to the US then Saudi Arabia. We produce double our consumption but export it all to the US. At $30 to $40 a barrel to refine it from the sands, seems worth it to increase our production. People who commute to work are leaving jobs b/c of gas prices. And there is no reason for it!


Dave in Toronto
said

These news reports just give the OIL companys a new "Target" to rip of consumers and OPEC now can set there OIL target to $ 130 range , If the US Dollar is so low why is the Canadian Dollar not moving higher . I though we were an OIL rich nation .


GLENN R. DUNCAN
said

IT WOULD SEEM TO ME THAT
WE ARE GOING BACK TO 1982. HIGH OIL,HIGHER INFLATION DUE TO HIGH COSTS OF "A" GROUP GOODS
DUE TO TRANSPORT COSTS.HIGHER INTEREST RATES.SHOULD REALLY DO A NUMBER ON OUR ECONOMY.
WE NEED TO GET AWAY FROM BASING OIL PRICES ON WEAK U.S.DOLLARS AND
TAKE CARE OF OUR OWN FIRST.I.E."CANADA"


Kyle
said

The scary part of everyone's comments are on the cost of petroleum, not the costs they will incurr this summer using their ACs and up comming winter with heating. Ontario had many chances to negotiate with Manitoba Hydro for cheap Electricity from Manitoba, but reneged because of a long term agreement. Now with the potential of Blackouts, I wonder what decision they should have made? If the Ontario Liberals really have Ontarioans in their best interest, they would have agreed to the contract and built the Power Corridor offered by the Federal Government.
TO enjoy the Dark Ages.


RH
said

Until the truckers block the highways in North America, no one will do anything about this.


Brent
said

If the Government did reduce the tax on gas the price would stay the same. The oil companies would just make more money and the income from tax would be forever gone. Remember the 13% manufactures tax that was suppose to come off after the application of the GST??? Better that money into the government where it goes back to the people in the form of health care and whatever else, more so then into the pockets of the greedy oil tycoons


Dean
said

How much do these people get paid at the NEB to tell us something we all know already? Wow. I wonder how we did without these people. The oil companies will continue to gouge us because they can without impunity. If it looks as though oil prices will drop, mysteriously, another crisis develops, real or imagined. The crisis' we see today are nothing we haven't seen for at least 40 years. People fight, pipes leak, refineries have maintenance issues. These things never caused the "havoc" then as they do now. I wonder who in this world has the intestinal fortitude to tackle the oil companies and their cronies. Where is our "deep throat" on this issue? Gas prices rise daily as oil rises except when oil drops,as it did yesterday, strangely, gas didn't drop. Gouging? Hmmm...


Steve in Ottawa
said

Gomer Pyle said it best: "Well surprise, surprise, surprise!"


Big Ontario User
said

I live in Southern Ontario, my Natural Gas is supplied by Union Gas in Chatam Ont.and it comes out of Lake Erie,This is Ontario Gas ,Where's McGuinty when you need him.


Candace whose car used to fill up on $19
said

Bla bla bla...same bullcrap we hear every week. "I'm predicting gas prices will rise." Well, aren't you a smart one? Let's just keep talking about it as the prices keep going up. It will take a recession or world depression to get prices back down to normal levels so we can afford to travel, eat and heat our homes. But you know nobody will ever do anything because our society relies on cars. They know we need to drive and they know we'll grumble, but we'll keep paying.


Mike
said

Here's the sad part. THERE ISN'T ANY SHORTAGE,AND IT DOESN'T COST ONE NICKLE MORE TO GET IT OUT OF THE GROUND THAN IT DID 15 YEARS AGO. It's all caused by greedy investors. Take the stuff off the free market and sell it for what it's worth. We'll all be better off.


Robin da Hood
said

Most of the oil - and food - price rise is being spurred on by speculators and buyers in the market. Right now its greed at the expense of the most vulnerable. Isn't the market economy just wonderful?!
But remember, the higher they are they harder they'll fall... too bad that its always the little guy who get s screwed in the process though!.. guess that unfettered capitalism for you - nothing but fear and greed.
Well at least the high oil prices may help to slow CO2 emissions and climate change by getting gas guzzlers off the road such as those "Suddenly Useless Vehicles" (SUVs)!.. a silver lining perhaps?



David
said

Here's a thought. Drive less. Oil is a finite resource. The world uses too much of it, at a rate that is still increasing. I don't care if the price goes to $4.00 a litre, and I have 3 cars. The more it costs, the less we will use, and I am all for that.


Ian Yellowknife
said

You'll hate me for... You should try having three children and three foster children before you can open your big mouth. It is safer in a large vehicle and although it costs more we pay the price. You find me a car that seats 8 safely and I'll buy it. People like you are either NDP or just Holier Than Thou


+
said

No surpise here.

Oil drops over 8.00 per barrel, the pumps are still well over 125 a litre and since the oil barrons are making a killing, why would they drop their prices.

Last year when oil prices were over 100.00 a barrel the most we seen was 92 cents.

This oil industry is greedy and pathetic.

By the way, there is NOT one car on the road today that could survive off of 10litres a month. That is not even 3 gallons of gas. Give that idea a shake.


Carol in NB
said

I don't get why the government insists, at this particular time, to keep the taxes on gasoline.

Why can't they grasp the concept that if the prices at the pumps are lowered (by eliminating or reducing the tax), this would mean that people would actually put gas in their vehicles, which would have a domino effect on the economy...tourism...spending, etc. They would still be getting tax revenue (probably more).

But, oh dear...that is SUCH an easy solution. We can't have that now can we. I dare the government to pull it's head out of its butt and set a global example by doing something about it...but then again...we ARE dealing with the wondrous government whom we've all grown to respect and love. Do you honestly think they're going to listen to the people? Doubt it. They would rather listen to the stockholders and investers of the oil commodities than us little lowly Canadians.

It's time for our government to step up to bat and actually start thinking what's better for this country.


Unhappy Camper
said

Anyone else see any parallels between this "crisis" and the energy crisis created by Enron?

You manipulate the market with fear and scare tactics and suddenly, ther price of oil will go up creating huge profits for those investors.

It'll take another 10 years, but you watch, they will find that this is the next generation of the Enron scandal. There are reasons for oil to go up and frankly, the reasons for other fuels to go up is crap. Propane at the pump is up 55 cents a litre over 2001 levels. What exactly drives those prices up that high?

This is going to be another Enron scandal and we are all too stupid and lazy to do anything about it.

We get what we deserve in the end. Sadly enough, most of you buy into it.


Nick - Ottawa
said

on a bit of a side note, don't fall for Mr Dion's carbon tax proposal. He insists taxes on gas will not be raised for the average consumer... Right...

What he's going to do is tax the big oil companies, who will then adjust their prices to reflect that in order to recoup the costs from the consumer. Sure, taxes won't go up, but the cost of the product will... There's no easy solution to this problem, and being uneducated on the subject I don't have much to offer to the table. Am I going to far in suggesting it might be time we stop exporting so much oil and start refining it ourselves? And it would also be nice to see some refund cheques come our way in Ontario like they get in Alberta and soon in Labrador.... Provinces that were propped up and supported for many years by HAVE provinces, and now that they've struck black gold, they only give their citizens a tax break...nice....good thing we have confederacy in this country.


Ki-Som
said

When is the damn government going to get off the fence and do something about this. The answer is never, as long as they are getting the taxes from these over inflated prices, it will continue. That is until the economy comes crashing down, then they will pay for it, big time, when the next election comes.


Julius
said

Everybody complains but no one seems willing to give up their SUV's, pick-up trucks and minivans. What's wrong with a 4-door Hyundai? We have a birth rate in this family of 1.6 children per woman. No one in this country needs a van or truck.


blacksheep
said

To You'll Hate me for this...but
We live 30 miles from town the reason was to get away from all the crime in the city & affortable housing. We are not stupid people as you seem to think I would like to see you use just 10 liters a month.get real


Richard
said

I wonder if gasoline has increased as much at the pump in the oil producing countries in the middle east as it has at our pumps here in Canada?

Very curious to know this.


SahibReginawaleAngry
said

Well, if national/regional authorities start predicting this it will become a self fulfilling prophecy because the suppliers will know that this is what is being expected and so be it!!


Evan in Athabasca (Look it up!!!)
said

You'll hate me for this..but

Please take a note, that I live in Northern Alberta, I have no public transit and I need a truck as a second vehicle (cannot afford a third vehicle or "men's toys") for the winter when we have 4 foot snow drifts on my drive way and on the highway when I go to work. I would like you to come up with a solution for that!!


Linda
said

A lot of things have to happen if we want a "made in Canada" price for energy.For one thing,there needs to be an east-west corridor for both crude oil,and electricity. NOT north-south. Then we need more refining capacity.
And, oddly enough,we need our governments to pay down debt,and lower taxes as quickly as possible. Only then will we be able to undue the trade deal that gives the USA equal access to Canadian energy. Unless we are able to do that they will literally suck Canada dry,and our children will be left with nothing.
Since our jobs and standard of living require export markets to support us,and the vast majority of our exports go to the USA,I don't think we could pull out of NAFT now even if we wanted to.I do think,however,that our kids might be able to.But they need us to expand our markets,make more allies around the world,and pay off the debt we accumulated.At that time,they would have more options.And even if the economy slowed,Canadians would be living off of a vast supply of Canadian resources.We do,after all,have almost everything we need to sustain our population quite nicely.
We should advance to an economy that uses Canadian resources to give us the competetive edge we need to compete in manufacturing anything.
There are some good ideas posted here.But most will take time.I just find it disappointing that our leaders are unable to unite the country by working on a strategy that benefits all of Canada.We must do more than export raw resources if there is to be a future for the next generation.


FN
said

STOP COMPLAINING! I'm tired of listening to and reading about how gas is so expensive. The cost for a litre of gas in the US and Canada is VERY LOW.

In Europe most countries have a gas tax that accounts for as much as 70% of the cost of gas, which by the way is basically about twice as much as here.

Don't like the price? STOP DRIVING or DRIVE A MORE EFFICIENT VEHICLE!


Fed up with the distribution of wealth
said

GENERAL STRIKE coast to coast. Corporate profits are at record levels, tax them, and eliminate all income taxes thus eliminating the multitudes that work at Revenue Canada thus saving an entire forest every spring time due to the convoluted tax returns that guarantee their jobs ,they are the parasites destroying the financial well being of the silent majority of anadians .People in Canada it is time to get as mad as hell!!! Keep going in this direction and even I a Big C coservative will turn left


JS
said

Gee, lets elect the Liberals so they can raise the GST back to 7% and bring in a carbon tax so we can pay even more for gas.


Trudy
said

When we all go back to horses, what will the government tax then? Tax their feed, their hay? I really want to be around to see safety inspections. There are too many people on the planet. This is the issue that needs to be addressed. I think nature will do a cull. She does it when any other species on the planet grows to such a large population that some kind of disease will kill off many to insure a few survive. Humans are just another species to her.


DO
said

I won't be traveling anywhere this year except for medical reasons. I then get reimbursed luckily because I couldn't afford it otherwise. I'm so tired of these oil companies/people controlling the world. Soon they'll be complaining about how they are losing money. Gee! I wonder why.


Vote NDP
said

The NEB should be advocating for a price ceiling where gas prices can't exceed more than a $1 per litre


Sonny
said

North Americans are the worst consumers and having been gouged at the pumps we continue to add to the profits of Big Oil.
Should we continue gorging ourselves on the World's supply then we will be paying through the nose this summer.
The United States hit Peak Oil in the 1970s and now relies in a large part as well as Canada on Middle Eastern Oil despite having a domestic supply.


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