What We Get Known For

Yesterday I met someone for lunch that I hadn't seen for a while. The first words out of their mouth, not even sitting down were: "I see you're not much of a RIM fan.". Geez, a couple of honest blogs! I didn't even know people read them!

Actually I did, and lately I've thought a little about what I am known for and what I would like to get known for.

Here's what I think I'm known for so far.

First, yes RIM. People blame me for their demise. I'm pretty sure that's not true. I was just trying to help.

Second, my views on cancer fund raising (stop giving). My video rant this weekend is the first time I've mentioned it here but anyone who's hit me up for a donation over the past two years knows my feelings.

Third?? Not sure. Maybe my personal views on consulting? I've been a consultant for a long time. I don't hide the fact I think that most consulting dollars are wasted.

What I'd like to become known for?

How about this? Get over your taxes. Roads and medical care and garbage pick-up aren't free. If we don't pay for them, we won't have them. I'd like to think that putting everything in the hands of private business is the answer - only buy what you want and trust businesses to provide it efficiently - but lots of services don't and won't work that way.  The American model (no taxes ever) DOESN'T work. Just watch - and check out Minnesota (Minnesota?!!) which has been shut down already for the past 2 weeks. I'm not sure Toronto is that far behind?

Beyond that I guess I'd like to be known for at least having, and exploring a point of view. My sense is most people don't have one - or if they do - they're either afraid, too lazy, or not sure how to share it. That's ok. There's less stress that way and perhaps the benefits of being known for something aren't that obvious?

I'm pretty sure that won't stop me!

Toronto Gas Prices

With retail gas prices rising again to almost $1/litre I did some quick digging to try and understand how that compares to crude pricing and margins in the past. What the #'s say is what we're all feeling - compared to a year ago, current retail pricing is being inflated significantly beyond the price of crude.

Some simple numbers.

This year 2009, retail prices/litre were 2.87 x the price of crude/litre in January, 2.84 x in February, 2.24 x in March and 2.27 x in April.

For the same four months last year, retail prices to crude prices were 1.71 x, 1.75 x, 1.6 x and 1.56 x the price of crude.

So, in January 2009 retail to crude prices were 1.16 x more expensive than in January 2008, 1. 09 x more than in February 2008, .64 x more than in March 2008 and .71 x more than in April 2008.

That's what you're noticing at the pumps.

Interestingingly, taxes on gasoline have only varied a couple of cent's/litre from 2008 to 2009 - which given the difference in retail prices, seems surprising but reflects the system of taxation.

In January through April this year 2009, the average taxes/litre in Toronto were 28.65 cents on an average retail price of 82.5 cents (34.7%).

In January through April 2008, the average taxes/litre were 29.82 cents on an average retail price of 106.75 (27.8%).

To increase margins, gas retailers have all the incentive in the world to increase prices - which seems logical. However, that doesn't mean more $ to government, especially if demand drops.

Interesting business. Oil companies are doing really well.

Keep bending over.