This has not been edited in any way....
Lets take another tack, and ask some pointed questions that you might be able to provide some honest numerical answers to...
From those small stickers on the pumps - "Understanding Gas Prices XXXX Canadian Average Pump Price", where XXXX is the year in question...
As a starter, I can't remember when the first of these went up, but I think it was 04 or 05. Anyhow, they usually show up in the earlier part of the year, so when is the '08 sticker going to come out?
Now the background for my questions:
On all the pumps now, the '07 sticker is the one that shows, and the pricing split is as follows (at least for here in Ontario):
48% Crude Costs
17% Refining & Marketing Costs
(the fine print at the bottom of the sticker states specifically that this is "Petro-Canada Refining & Marketing Profit".
However, last week I happened on a pump that still had the 2005 sticker up - any guesses on the changes???
47% Crude Costs
16% Refining & Marketing Costs
Now for the questions:
1. Between '05 & '07, the PC Refining & Marketing PROFIT went up by 50% (2% - 3%). What does this represent as a dollar figure? (and it seems to me like that's one heck of a growth rate on the back of the consumers wallet)
2. Also, the fraction of Crude Costs went up by 1 percentage point (47% - 48%). Does Petro Canada, as a complete corporate entity, not just the Refining & Marketing arm, earn any profit on Crude which is contained within either the Crude Costs or Refining & Marketing Costs portion of the pie?
3. Assuming that answer to the above question is yes, what is the %Petro Can Profit on Crude Costs portion of the pie alone? And what is the fractional increase from '05 - '07 both as a percentage and as a dollar figure?
4. Given the massive price fluctuations during '08, I'm guessing that we might not actually see a pump side sticker this year as the Profit piece of the pie would show another drastic increase. Can you provide any of the '08 numbers here?
Finally, looking at the pie chart on the stickers, it becomes apparent that the stickers are meant to draw attention to how much Tax we pay on gas, as this is the only portion of the pie which is cut away from the rest. I gather this is meant to try and deflect the anger we feel at the pump when the prices fluctuate so wildly. However, of the 32% that makes up the taxes portion of the pie (2007), in Ontario the taxes consist of a $0.10/l Fed. Excise Tax (fixed), plus a $ 0.147/l Provincial Tax (fixed), plus GST - the ONLY variable tax... So when during a given year the price fluctuates from the $0.85/l range up to the $1.40 range, what's the actual tax fluctuation??? only the GST, which if at 5% means a for a change of $0.85 - $1.40, an increase of $0.55/l, only $0.0275/l of that change is related to taxes - the rest is ALL attributed to the remainder of the pie chart, a significant portion of which I can only assume is PC profit (and again, I don't just mean Ref & Marketing, but PC as a complete entity). I have to admit that every time I look at that sticker on the pump, I only get more annoyed with PetroCan, not the government, because of what is clearly a veiled attempt to pull the wool over the eyes of the customer.
Perhaps it might prove beneficial to us, if you were to show an example of profit (again PC Corporate, not just Ref & Marketing) on two daily price examples, one at $0.85 per litre, and the other at $1.40 per litre, rather than as an annual average breakdown.