Consumers will take advantage of the crash in oil?

Les consommateurs vont-ils profiter du krach pétrolier?

With the gasoline, when it is not the oil that we exploit the portfolio, what are the governments of Quebec and Ottawa, who will be taking over.

On the average price of a litre of gasoline at the pump yesterday in the Greater Montreal, or 82 cents per litre, more than half of the price accounted for the many taxes paid into the coffers of the State.

This is to tell you how much Quebec and Ottawa we siphonnent to the pump. It should be noted that the government of Quebec is two times more efficient than the federal government in terms of taxes on gasoline.

In fact, about 82 cents per litre of gasoline yesterday, taxes account for only 42,9 cents, while the gas (purchase of crude oil, refining margin, transportation, sales and retail margin) amounted to 39.1 cents before the panoply of taxes.

Here is the distribution of 42,9 cents of tax per litre that we siphonnait yesterday at the pump :

To 29.3 cents for Quebec

  • Fixed tax on fuels : 19,2 cents
  • Tax funding of public transit : 3 cents
  • Sales tax (QST) : 7.1 cents

With 13.6 cents for the federal

  • Fixed tax federal excise : 10 cents
  • Sales tax GST : 3,6 cents

When full of fuel, it is necessary to know that the governments we have to pay the sales taxes (QST and GST) on the two taxes that are the tax of Quebec on fuels (19,2 cents/ litre) and the federal excise tax (10 cents/liter).

Well, yes ! We tax taxes. As a creativity tax, this is great ART !

Crash oil

The barrel of american oil WTI (West Texas Intermediate) had a nasty crash yesterday, while futures for delivery in may traded up to -37 per barrel.

You have read ” a minimum of thirty-seven dollars “. A never-before-seen in the history of the black gold.

For the first time in its history, the price of crude in the u.s. is spent under the bar… 0 dollar. Because of what ? The collapse of demand because of the containment measures to stem the spread of the coronavirus. The economic life is greatly crippled, the oil consumption in the world has dramatically dropped.

And another factor in explaining the crash of yesterday : the storage capacity of oil are completely saturated, in view of the sharp decline in gasoline sales.

BUT…

It is not necessary to believe that the price of black gold will remain a long time under the bar to $ 0. The historic fall of yesterday is primarily due to the expiration, today, of the contracts for delivery in may.

The futures contracts of WTI for delivery in June traded, them, around US $ 20 per barrel. And Brent is trading at US $ 25.

Since the beginning of the year, the barrel of oil WTI has shrunk two-thirds, from $ 61 to $ 20, according to the contract delivery in June.

Because of the global pandemic, the world is full of black gold. Of course, producers in the canadian oil from the tar sands of Alberta are going through an extremely difficult period. Their “Western Canadian Select” is trading for just a few dollars.

It is catastrophic for the province of Alberta, which sees collapse of its main industry.

ATTENTION TO OIL

It is not necessary to believe that the oil will pass to the pump all of the great deals that represents the fall of the black gold since the beginning of the year.

Rely on them to “play” in their favor with the refining margins and the margins of the retail sales in the essenceries.

And these are not Quebec and Ottawa, which will put pressure on the oil companies, who themselves are strong suckers with gasoline.

Also, I will point out that in this time of economic crisis, neither the one nor the other has not thought it wise to cut off the lower cenne of taxes on gasoline.

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