Quote:
Originally Posted by HVA7mm
Have the volumes changed that much in one year, probably not. I believe that the Chicago rack price has a substantial influence on the Canadian rack pricing, that being said there has only been an increase of about 15% on the Chicago rack price over the last 12 months.
That's right in line with the increases in Eastern Canada and the West Coast. That makes perfect sense considering the vast oilfields in Ontario and the lower mainland.
Maybe the Canadian petroleum producers that supply the prairie provinces can have a petroleum jelly dispenser installed next to the card reader at the fuel pumps. That way when we get bent over it won't hurt near as much. Since petroleum jelly is essentially a byproduct, it shouldn't add much of a premium to the pump price either.
We all know that the retailers have a fairly negligible profit margin based on rack pricing, so who sets/controls/manipulates/inflates the rack pricing in the prairie provinces? It couldn't be the oil companies could it?
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Quote:
Originally Posted by Sundancefisher
I pointed out how much oil companies are making. Can't explain that any clearer. Do you want oil companies to make no profit? All the major oil company's financials are listed. If you show me one company that is making an obscene rate of return I will either join you in asking why at the same time consider investing...but more likely asking why.
I showed company data that proves they are making far less profit margin than McDonald's, Pfizer, Johnson & Johnson, Home Depot, CNRail.
We are not Venezuela so please let me know what I am missing. What companies are being unfair based upon facts please. Not just common annoyance about wanting to get something cheap. I know we all want a deal...I am no different.
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I'm not refuting the overall financials of the O&G companies, as their financials are readily available. I also have friends that work directly for major producers both in Calgary and in Houston, and know that the profit margins have been increasingly narrow in the last 5 years especially in Canada.
I think that most on this board, myself included, are more interested in the regional anomalies in the rack prices i.e. "the prairies". The answer that you had provided was "Volume most likely". Would you mind elaborating, as I think that everyone has a pretty good idea about supply and demand, but the local inflated rack pricing doesn't appear to be justified.
Don't get me wrong, I like many others are invested in the major players, but my dividends and rate of return certainly don't reflect the extra 35-45% that I am currently paying regionally for their product.