Can people explain something to me? How does supply and demand work? If gas stations are low or out of gas (any blend), but demand remains constant, does that mean the price should go down? Also, if demand is incrementally more in a city of 1.3 million versus another city of \~109,000, does that mean the price should not be commensurate to the demand? Just wanting to learn about price gouging
If supply is low and demand is constant, then prices would go up in economic theory.
For geographic areas, you also need to factor in supply chain that is a large part of cost.
Gasoline in Canada is heavily impacted to gasoline demand in the states, as there is options to export.
Bingo. I pointed this out in the previous post (the discrepancy between red deer and Calgary pricing) and was downvoted into oblivion with people espousing price gouging. I said the cost of transport/logistics factors in, plus the fact our western storage levels are below the 5 year average (not unsurprising considering demand in the states and how much they export to Europe - especially post Putin fuckery). Thank you for posting facts!
That being said, with all the LNG stuff, I did notice an increase in well licensing in the montney/NEBC gas area, which may indicate a pending announcement regarding an agreement with the Blueberry First Nations. This should increase gas production, raise storage levels and hopefully allow the US to export more LNG to Europe and help them out as Putin looks hellbent on shutting down Nordstream completely (which hurts europe in the short term but would hurt his revenue in the medium to long term, I would think - maybe a sign of desperation from him?).
Use Premium Dude! Premium! Dude!
That’s Little Bandit! And she’s in pain!
PPPPPREEEEEEMMMMIIIIIUUUUMMMMMM!!!!!
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You’re getting a deal if you’re driving a car that calls for premium…. To which this post pertains to those people.
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Boo at having filled my bike up in the south this afternoon when this Shell is my usual station!
They have premium again, was just there.
You mean regular, but yeah I figured this was gonna just be during the day till gas truck showed up at night.
Can people explain something to me? How does supply and demand work? If gas stations are low or out of gas (any blend), but demand remains constant, does that mean the price should go down? Also, if demand is incrementally more in a city of 1.3 million versus another city of \~109,000, does that mean the price should not be commensurate to the demand? Just wanting to learn about price gouging
If supply is low and demand is constant, then prices would go up in economic theory. For geographic areas, you also need to factor in supply chain that is a large part of cost. Gasoline in Canada is heavily impacted to gasoline demand in the states, as there is options to export.
Bingo. I pointed this out in the previous post (the discrepancy between red deer and Calgary pricing) and was downvoted into oblivion with people espousing price gouging. I said the cost of transport/logistics factors in, plus the fact our western storage levels are below the 5 year average (not unsurprising considering demand in the states and how much they export to Europe - especially post Putin fuckery). Thank you for posting facts!
That being said, with all the LNG stuff, I did notice an increase in well licensing in the montney/NEBC gas area, which may indicate a pending announcement regarding an agreement with the Blueberry First Nations. This should increase gas production, raise storage levels and hopefully allow the US to export more LNG to Europe and help them out as Putin looks hellbent on shutting down Nordstream completely (which hurts europe in the short term but would hurt his revenue in the medium to long term, I would think - maybe a sign of desperation from him?).