Thursday, April 24, 2008

Price of Gas Could Reach $2.25!

Hybrid vehicle sales might soon skyrocket as Canadians stare in awe at the continuallly rising gas prices. A new report released by CIBC World Markets predicts that we won't see an end to this rise any time soon, with prices potentially reaching as high as $1.80 this summer, and up to a whopping $2.25 by 2012!

CIBC says that tight oil supplies are the cause, given that production has not increased for more than two years, while oil consumption has no doubt increased.

"Whether we have already seen the peak in world oil production remains to be seen, but it is increasingly clear that the outlook for oil supply signals a period of unprecedented scarcity," explained Jeff Rubin, Chief Strategist and Chief Economist at CIBC World Markets. "Despite the recent record jump in oil prices, oil prices will continue to rise steadily over the next five years, almost doubling from current levels."

From an industry standpoint, there will be plenty of folks feeling a major hit. On the road sales reps and other professionals. Field workers and installation staff. And even just those who commute into the office from out-of-town homes. $2 a litre could easily mean more than $80 just to fill a standard-sized vehicle!

Hopefully something changes soon, or we'll definitely be seeing a lot more hybrid electric cars and bicycles on the road, along with a public transit system that's even busier than it is now. Not that any of these is a bad thing, but it simply isn't feasible for some.

As an aside, the whole situation reminds me of a cartoon I saw once (not the one above) that depicted a man pumping gas while removing his arm and leg for payment. Indeed.

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1 comment:

Anonymous said...

It currently costs me $85 to fill my car up with premium 7 years ago it cost me $34.
Somehow I don't doubt somebody (country, company or stock market) are/is manipulating the price. It doesn't make sense to me that Americans are complaining they're paying .85 cents a litre and we pay 30% more when oil comes from Alberta, free market eh.
We're told to blame China & India for this what a load of c!!!