This presentation discuss all aspect of gasoline pricing.

1. Anatomy of Gasoline
Prices – December 2018
Paul Young CPA, CGA
Date: December 31, 2018

2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and
Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
• Price of Gasoline
• Nanticoke Refinery (Key Refinery
• Refineries / Canada
• Refined Petroleum

4. Summary
• Toronto ranks the worse North American city for commute times -
https://globalnews.ca/news/4287922/toronto-worst-city-commuting-
north-america/. The more idling the more gas is consume by vehicles
• There is no link to carbon tax and reduction in emissions. For carbon
taxes to be effective they would have to be set very high to discourage
people from driving. High carbon tax would kill the economy
• Goods and Services input costs would reflect higher gasoline costs. The
carbon tax could take 1,100 to 2,200 out of people’s pocket and do
nothing for emissions.
• Carbon tax are not revenue neutral -
https://www.fraserinstitute.org/blogs/bc-budget-acknowledges-the-
carbon-tax-was-not-revenue-neutral

5. Price of Gasoline
Ontario
2018 to
2015
18-Jan 18-Feb 18-Mar 18-Apr 18-May 2018 2017 2016 2015 Change
Average
(regular)
$
123.1
$
122.2
$
123.4
$
132.1
$
135.4
$
127.2
$
113.7
$
100.9
$
107.27 18.6%
-0.8% 1.0% 7.1% 2.5% 11.9% 12.7% -5.9%
Crude Oil
Price 63.66 62.21 62.76 66.26 69.59
$
62.94
$
50.91
$
43.21
$
48.72 29.2%
% change -2.3% 0.9% 5.6% 5.0% 23.6% 17.8% -11.3%
Average Fill
up Per year
Gas Prices
$
127.2
$
50 52
Crude Oil Cost 0.54
$
68.712
$
27
$
1,404
Refining 0.17
$
21.631
$
9
$
442 Taxes
Fed Tax 0.12
$
15.269
$
6
$
312 Fed
$
312
Province Tax 0.14
$
17.814
$
7
$
364 Prov
$
364
Carbon Tax 0.03
$
3.817
$
2
$
78
$
78
Total 100.0%
$
127.2
$
50.000
$
2,600
$
754 29.0%
https://globalnews.ca/news/3936577/ontario-carbon-pricing-cap-
and-trade-carbon-tax/
• Ontario Carbon tax is 4.3 cents a liter
• Higher fuel costs -
https://www.instituteforenergyresearch.
org/analysis/countries-carbon-taxes-see-
higher-energy-prices/
• USA is not pushing for carbon tax
• 30% of what people pay at the pump is
taxes
• Refineries operational costs are
influence by Energy, labour, raw
material, cost of capital and delivery
• AB built the first new refinery in decades
-
http://business.financialpost.com/comm
odities/energy/a-new-refinery-in-
alberta-has-come-to-the-rescue-of-
battered-oil-producers-so-why-is-its-ceo-
sad
• Ontario Federal liberals are pushing
carbon tax at all costs.

6. Oil Prices, Inflation and Average Gasoline Price

7. Nanticoke Refinery
Source - http://www.imperialoil.ca/en-ca/company/operations/refining-and-supply/nanticoke

8. Refineries – Canada – Sample
Source - http://www.oilsandsmagazine.com/projects/canadian-refineries

9. Refined / Petroleum – Canada – March 2018
Source - https://www150.statcan.gc.ca/n1/en/daily-
quotidien/180615/dq180615c-eng.pdf?st=vluEQ4rm

10. Refined / Petroleum – Canada –September
2018
Source - https://www150.statcan.gc.ca/n1/en/daily-
quotidien/180615/dq180615c-eng.pdf?st=vluEQ4rm

11. Carbon Tax / Gasoline
• https://www.slideshare.net/paulyoungcga/price-of-carbon-and-the-impact-on-taxpayers-and-
consumers
• https://torontosun.com/opinion/columnists/goldstein-will-trudeau-be-our-carbon-
crusader#comments
• Trudeau and his team listen to only UN, Soros and Butts. Butts is the same guy that destroy
Ontario’s economy with his FIT policy
•
• https://torontosun.com/opinion/editorials/editorial-next-year-the-carbon-tax-debate-goes-to-
court?utm_term=Autofeed&utm_medium=Social&utm_source=Facebook#Echobox=1545886677
•
• Forest Management
• https://climatechangedispatch.com/red-spruce-growth-
co2/?fbclid=IwAR1vpeRA8vpZyhOB8zRwWmqd0K6XXthZquvH2M1l-SSyj2Elbuyj82XN4DU
•

12. Michelle Rempel vs Bill Morneau – Carbon Tax

13. Middle Class and Gasoline
“Dan McTeague, a senior petroleum analyst at GasBuddy.com, says
gasoline prices are at near-18-month lows because of global oil
prices that have tumbled over the past two months on worries of an
economic downturn, a U.S.-China trading tiff and concerns that
members of the OPEC oil cartel won’t live up to production cuts.”
Source -
https://www.thestar.com/business/markets/2018/12/27/gasoline-
prices-in-most-of-canada-set-to-rise-this-weekend-from-18-month-
lows.html