Like we saw earlier this week major refiner/marketers are not dropping their prices in accordance with today’s market changes.  This is nothing more than pure profit taking.  For example, the extra charge by refiners above the NYMEX benchmark for gasoline will jump from 6.6 to 7.6 cents/litre in Toronto overnight.  Similar jumps are being seen across the country.

Considering the market turmoil surrounding Dubai’s request to suspend debt payments this article, a very interesting study from Princeton economists about the changes that have occurred in the commodities futures markets, strengthens the call for more oversight and regulation of the futures markets.

The article can be found here: http://www.princeton.edu/~wxiong/papers/commodity.pdf

I have received several emails from you in the past few moments upset with today’s increase at the pumps. 

To be perfectly clear Canada’s refiners have increased, in one day, their usual excess margin of profit on a per litre basis from 6 cents to 7.7 or more (in the Toronto area). Other parts of the country have seen their refinery margins increase as well.

This is exactly what happens in a market where there is no competition at the wholesale level, and only handwringing and excuses, or worse indifference, from our federal government.