Friday, December 05, 2008

Gas in Saskatoon, December 5, 2008.

This week saw yet another drop. Gas is now 83.9 cents a litre. It was interesting to see a Macleans(Canada's equivalent of Time and Newsweek)cover shot from mid June the other day on speculations of how your life might be with 200 buck a barrel oil. No doubt we will see oil at that price eventually, barring a major breakthrough in alternative energy, but it seems a lot further away now than it did when that issue was printed. Unfortunately a lot of economic ministries in various places, including here in Saskatchewan, were banking on the revenue higher prices was going to bring, so their budgets have gotten a wee bit screwed up as a result, as have the plans of anyone who bought a lot of petroleum product at price X expecting it to get a lot more expensive by now, not drop. Just goes to show that economics is far less predictable than some would like us to believe.

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