[mtbr]

Rob Breakenridge, For The Calgary Herald
Published: Tuesday, May 06, 2008

Memo to politicians: If you do not actually desire a reduction in the price of gasoline, please refrain from bemoaning whatever the price of gasoline might happen to be.

Moreover, if you happen to be a politician who advocates and supports policies that would actually lead to an increase in the price of gasoline, the advice is then simpler: just shut up altogether.

Let's draw a comparison here, one that seems apt given that Big Oil and Big Tobacco are two big supervillains at the moment, and the fashionable rhetoric has us speaking in terms of "addiction" as it relates to fossil fuel consumption.


I'm no smoker, but I'm sympathetic to the argument that smokers might themselves be feeling a little gouged these days.

But of course it's all by design -- the high price of tobacco is intended to discourage harmful behaviour and promote positive behaviour.

God forbid if Big Tobacco even sought to lower its prices.

In fact, last year's Alberta Tobacco Reduction Act bragged of its policy implications, namely that the price of tobacco would go up. It would be the height of foolishness and hypocrisy, then, for an Alberta politician to bemoan the high price of tobacco.

And yet, foolishness and hypocrisy abound when it comes to the price of gasoline.

If we follow the tobacco/fossil fuel analogy, high gas prices may have a similar effect: generating tax revenue, while simultaneously discouraging "bad" behaviour and promoting "good" behaviour.

As one analyst noted last week, countries with higher gasoline prices tend to have more fuel-efficient cars. We see that in Europe, where as of April 28, the average price per litre (in US dollars) was $2.17 in the U.K., $2.24 in Germany, and $2.48 in Holland.

The end result of high prices would seem to be what the environmentalists -- and politicians who claim the mantle -- so badly desire: discouraging consumption, putting a "price" on fossil fuel, and promoting fuel-efficient vehicles.

These are very similar themes to those now being touted by Liberal Leader Stephane Dion and his plan to "put a price on carbon".

It's unclear whether that will mean a carbon tax specifically, but can anyone honestly argue that the end result of Dion's plan would mean lower gasoline prices?

In B.C., that province's new carbon tax covers all fossil fuels, and will indeed mean higher gas prices. As of July 1, B.C.'s carbon tax will add 2.41 cents to a litre of gasoline, rising to 7.24 cents in 2012.

So clearly the federal Liberals plan to put us on a path toward higher costs for fossil fuels, specifically gasoline.

Now, they may be doing so with the best of intentions, but you'd think then that they'd be welcoming higher prices, or at least allowing the public to become more conditioned to them (or not getting hopes up about price relief).

Not so -- in fact, Liberal MP Dan McTeague seems to be Canada's bemoaner-in-chief when it comes to gasoline prices.

Of course, McTeague and others play the "gouge" card, and say we're all lining the pockets of Big Oil, but of course these high energy prices are certainly lining government's pockets, too.

Even if one were to buy into the gouge myth (see European gas prices above), what should we call it when government policies make gasoline even more expensive?

The NDP is on the bandwagon, too -- even stranger given their attempts to outflank the Liberals on environmental issues.

NDP Leader Jack Layton has talked of a moratorium in the oilsands, the NDP website features such rhetoric as "reducing our reliance on fossil fuels," the "need to burn fewer fossil fuels in order to pollute less," "decreasing our demand for . . . fossil fuels."



Well, let's see, if something's cheaper will we "decrease our demand" for it? I don't think the laws of economics quite work that way.

Yet at the very same website of the very same NDP you'd find an entire section devoted to, well, bemoaning the price of gasoline.

Paying more for gasoline is still paying more for gasoline even if it comes with a side dish of sticking it to Big Oil, or saving the planet, or some other environmental platitude.

Politicians who bemoan the very state of affairs they intend on creating are to be shunned.

- - -

[Toro]

Good article.

I've always said that if you are a true environmentalist, you should want $200-$300 oil. To say that we should do something about global warming then complain about the price of energy is more than a tad hypocritical.

[Zipperfish]

Toro Toro:

Good article.

I've always said that if you are a true environmentalist, you should want $200-$300 oil. To say that we should do something about global warming then complain about the price of energy is more than a tad hypocritical.

No I'd say that to be a true environmentalist you should care about the environemnt. That's about the only prerequisite I can think of.

[Blue_Nose]

Toro Toro:

Good article.

I've always said that if you are a true environmentalist, you should want $200-$300 oil. To say that we should do something about global warming then complain about the price of energy is more than a tad hypocritical.

A so-called "true environmentalist" would prefer the consumption of oil to decrease by reducing demand, regardless of the price.

From an economic standpoint, this decreased demand would result in the lowering of the price, not the increase.

[mtbr]

Blue_Nose Blue_Nose:

Toro Toro:

Good article.

I've always said that if you are a true environmentalist, you should want $200-$300 oil. To say that we should do something about global warming then complain about the price of energy is more than a tad hypocritical.

A so-called "true environmentalist" would prefer the consumption of oil to decrease by reducing demand, regardless of the price.

From an economic standpoint, this decreased demand would result in the lowering of the price, not the increase.

Doesn't seem to be working in Europe.

[romanP]

I think that, in order to reduce consumption, the only option is going to be making oil really expensive. Not enough people are willing to change their bad driving habits despite the thinning of their wallets, so it seems the only option is to hit them where it hurts.

[romanP]

mtbr mtbr:

Blue_Nose Blue_Nose:

Toro Toro:

Good article.

I've always said that if you are a true environmentalist, you should want $200-$300 oil. To say that we should do something about global warming then complain about the price of energy is more than a tad hypocritical.

A so-called "true environmentalist" would prefer the consumption of oil to decrease by reducing demand, regardless of the price.

From an economic standpoint, this decreased demand would result in the lowering of the price, not the increase.

Doesn't seem to be working in Europe.

They have much more efficient cars in Europe, and Europeans also drive a hell of a lot less than North Americans do because their cities just aren't built for cars.

[mtbr]

back to the article....Layton and Mcteague should shut their pie holes.

[Wada]

My Dad is a very strong Conservative and he bitches about the price of gas constanly. I on the other hand am Liberal and don't drive a car.

[Benoit]

Toro Toro:

Good article.

I've always said that if you are a true environmentalist, you should want $200-$300 oil. To say that we should do something about global warming then complain about the price of energy is more than a tad hypocritical.

Pay attention: Non-corrupted persons should insist to pay for gas only what is necessary to cover its production and distribution costs that are around $30/baril, nothing more.

[mtbr]

Wada Wada:

My Dad is a very strong Conservative and he bitches about the price of gas constanly. I on the other hand am Liberal and don't drive a car.

This Conservative spent a whole 85 bucks on gas last month...price of gas isn't an issue around here.....2.50 a liter looks good to me.

[BartSimpson]

I spend about US$70 per week on gas now. I'll say that it isn't bothering me so much in that traffic is noticeably lighter on the roads lately and due to that my mileage is higher and my commute time is about half or even less of what it had been six months ago.

I'd support an increase in gas taxes now because it would get even more low income people off the roads and onto public transit where they belong thus freeing up the roads for people who can afford to drive and pay taxes to subsidize public transit.

/\/\/\/\

Can't wait to see the liberal reaction to that!

[Zipperfish]

BartSimpson BartSimpson:

I spend about US$70 per week on gas now. I'll say that it isn't bothering me so much in that traffic is noticeably lighter on the roads lately and due to that my mileage is higher and my commute time is about half or even less of what it had been six months ago.

I'd support an increase in gas taxes now because it would get even more low income people off the roads and onto public transit where they belong thus freeing up the roads for people who can afford to drive and pay taxes to subsidize public transit.

/\/\/\/\

Can't wait to see the liberal reaction to that!

Sounds good to me. But carrying the argument to its logical end, anyone who doesn't have a car should be paying far, far less for roads (which I believe come out of general provincial revenues currently). On the balance, those without cars are probably subsidizing you (through roads, traffic cops, bridges, etc) more than you are subsidizing them (through transit).

To my mind roads (and costs associated with roads) should be paid for through gas taxes and subtracted from income tax.

[Wada]

BartSimpson BartSimpson:

I spend about US$70 per week on gas now. I'll say that it isn't bothering me so much in that traffic is noticeably lighter on the roads lately and due to that my mileage is higher and my commute time is about half or even less of what it had been six months ago.

I'd support an increase in gas taxes now because it would get even more low income people off the roads and onto public transit where they belong thus freeing up the roads for people who can afford to drive and pay taxes to subsidize public transit.

/\/\/\/\

Can't wait to see the liberal reaction to that!

[ryan29]

i know its rediclous they complain so much but want to do things that would raise the price even more .

i'm waiting for the green party to start complaining too , even though they want to raise the price of gas . you know just to complain for the heck of it