Saturday, August 30, 2008

Comparing the price of gasoline between Montreal and Paris

I wish that with each new rise in the price of gasoline, some people would cease to comfort consumers telling them that gasoline is still much less expensive in Canada than in Europe.
On August 30 in Paris, one could find regular gasoline (SP95) at 1,399 € per litre
(French Ministry of economy) while on August 29 in Montreal, the price of the same fuel ranged between $1.389 and $1.394 (Quebec’s Régie de l’énergie)
Using the August 30 conversion factor, 1.5996 dollar for 1 euro
(Royal Bank of Canada), some might say that the price in Paris is actually $2.24; this calculation is completely wrong and misleads people.
The $2.24 is only valid for a Canadian visiting Paris, whose salary is paid in Canadian dollars, buying gasoline for a rental car. The French are paid in euros; 1,40 € is for them what $1.40 is for us.
In other words, the price of gasoline is exactly the same in Paris and Montreal, apart from the daily variations which exacerbate so many Montrealers.

No comments: