Total Pageviews

Tuesday, February 22, 2011

Supply and Demand: A real Gashole

For any of you who may be thinking the conflicts in northern Africa (ie. Libya, Egypt and Tunisia in case you've been living under a rock) aren't going to affect you here in relatively cozy Canada:

You're wrong.

Aside from the fact that, at this rate, Africa could become a fully-democratic power with more than a billion people  (compared to about half a billion in all of North America), the result of the anti-government fighting across the big pond will likely hit you all on this side of the planet right where it hurts the most: the wallet. 

The civil uprising in oil-rich Libya is making investors nervous which is affecting the price of crude. Which will inevitably mean you will pay more at the pump.

Yes, I'm talking to you, guy with the eight-seater SUV that requires 100L of fuel. Actually, you probably don't care because you're driving a $45,000+ vehicle. Maybe I should direct this warning at the sedan/compact car driving individuals who chose their car for economy and/or environmental reasons.

Two days ago it cost me (actually, my wife-to-be) $60 to fill up my four-cylinder Hyundai. What? 

That price will only shoot up. 

Is fuel production/supply really decreasing in Libya as reports state? Who really knows for sure, except those who are producing it. But it's a great excuse for the oil giants to adjust prices in their favour. For as long as they want. 

Anyways, if you need gas, now's the time to do it before the ripple effect puts a ripple in your wallet.

No comments:

Post a Comment