Keeping it Real…

Canada needs a Windfall Profits Tax for Oil Companies using the Iran War to shake down consumers.

Sunday afternoon, I spotted a “deal” … gasoline “on sale” at Petro-Canada in Vancouver for $2.17.9 per litre … down 5 cents a litre from the price in the morning!

And while I was pumping my $48 purchase for only 22 litres (can’t afford to “fill up” anymore), I wondered how Canadian oil producers, selling Canadian gasoline in Canada to Canadian customers can justify charging “world” prices.

After all, Saudis still are paying 62 cents a litre (US) … not “world” prices; Kuwaitis pay 34-cents a litre (US) … not “world” prices; and, Venezuelans onle pay 3.5 cents a litre (US) … Yes, 3.5 cents a litre!!! (Read the whole world list, as of May 11, here: https://www.globalpetrolprices.com/gasoline_prices/).

Canadians are being ripped off!!!

And most oil companies are now profiting HUGELY from Canadian consumers’ suffering!

Petro-Canada made a profit of $1.79 Billion in 2025, up from $1.76 Billion in 2004, according to Petroleum News. And that does NOT include any ADDITIONAL profits the company has made since the beginning of this year, with prices almost doubling during the current “crisis”.

“Canada’s Big Five awash with profits”, the Petroleum newsletter reported.

“The profit breakdown shows: Imperial Oil C$2.6 billion (C$2.05 billion in 2004), Shell Canada C$2.01 billion (C$1.29 billion in 2004), Husky C$2 billion (C$1.01 billion in 2004), Petro-Canada C $1.79 billion (C$1.76 billion in 2004) and Suncor Energy C$1.25 billion (C$1.09 billion in 2004),” it revealed. (Read the full article here: https://www.petroleumnews.com/story/2006/02/19/news/canadas-big-five-awash-with-profits/9894.html. )

The Financial Post predicts Canadian oil producers will cash in big-time in 2026 as a result of the Iran war.

“As for energy producers, 2026 could be a windfall year, as higher prices raise cash flow and profits. Using average oilsands breakeven costs and the futures price expectations above, a single facility producing 100 million barrels per year could see $3-$4 billion in incremental profits,” FP reported just weeks ago. (Details: https://financialpost.com/opinion/numbers-oil-price-windfall.)

In fact, Suncor, apparently Canada’s “largest integrated oilsands producer” has already reported first-quarter profits of $2.1 Billion … UP almost 24% from the same quarter in 2025.

The US parent company of Shell Canada’s first-quarter profit “beat estimates and hit its highest in two years at US$6.9-billion on Thursday, boosted by gains linked to the Middle East war, prompting it to raise the dividend by 5 per cent,” the Globe and Mail revealed last week.

Imperial Oil, however, reported lower first-quarter profits, but that was due to disrupted “throughput” operations, due to technical problems.

The federal government is also cashing in on the higher prices/profits. Although the Liberals cut the federal gasoline tax, it still is cashing in BIG TIME from the higher taxes on the higher profits reported by the corporations.

It’s time to do something for the people.

The federal government should introduce a Windfall Profits Tax to curb the Great Canadian Consumers Ripoff where oil companies are cashing in by excessively squeezing Canadians to the tune of BILLIONS more profits!

The Iran conflict looks likely to continue for quite some time, and even after it ends, it will take many months before global trade returns to any semblance of normality.

How many more EXTRA BILLIONS will the federal government let the oil companies rip off struggling Canadian consumers before it acts?

Time for the media to press for an answer … and action!

Happy Victoria Day!

Harv Oberfeld

(Follow @harveyoberfeld on “X” for FREE First Alerts to new postings on the Blog.)

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The American President, the American people, the American media are all consumed right now with Iran. And the price of gas. And the cost of groceries. And even the deterioration of US democracy, gerrymandering, women’s, gay, abortion rights and, of course, the Epstein files.

But 10 years from now … when today’s “news” fades into history … the BIGGEST gaffe, blunder of the Trump administration … his legacy … will be how the US let China plant itself so firmly along America’s northern border … in Canada!

The Mad Hatter, for months, has insulted, demeaned, threatened, bullied and tariffed its once most loyal, supportive, integrated ally for more than a year now … and has hurt it badly, in more ways than one.

Canada lost 18,000 more jobs in April, bringing the total to more than 100,000 jobs lost since January 1st, mostly due to US tariffs on our steel, aluminum, auto parts and forest products .

The Canadian economy is bleeding.

BUT the tariffs also cost United States auto industry an estimated $12.5 Billion in 2025 alone; 42% of US firms have reported supply chain disruptions; 63% complain of higher costs; and, 53% have reported reduced profits.

And Canadians are pushing back … hard!

America’s border towns/cities/businesses are suffering huge losses as Canadian shoppers stay away in droves; tourism in many US states has been badlywounded; the American cruise industry is missing thousands of Canadian passengers; and, US beer/wine/spirits producers are literally crying in their suds as all but two provinces ban, and millions of Canadians boycott their goods.

However, the worst long-term impact of Trump/America’s “war” against Canada has almost completely been unnoticed or ignored by the American President, the American people, the American media: how China is moving in to take up the slack … and increase its stake, its investment, its presence, its influence in Canada.

In January,  Prime Minister Mark Carney visited China, his office explaining “As the world’s second-largest economy, China presents enormous opportunities for Canada in this mission.” 

 “Canada’s new government is working with urgency and determination to diversify our trade partnerships and catalyse massive new levels of investment,” the PMO announced. 

In other words: Welcome back to Canada, the People’s Republic of China … our former foe!

Last month, Finance Minister François-Philippe Champagne led a trade mission to China, noting “”China is the second-largest economy and our second-largest trading partner, so you have to engage.”

Other federal Ministers making pilgrimages to China: Foreign Affairs Minister Anita Anand: Agriculture Minister Heath MacDonald; and, Minister of International Trade Maninder Sidhu.

BC Premier David Eby will also be leading a trade mission to China this year … “to deliver the message that B.C. is a predictable and dependable trading partner amidst global uncertainty, caused first by U.S. tariffs and now by the war in Iran,” the Agassiz-Harrison Observer noted.

““We are a stable jurisdiction in a very unstable time,” Eby said.

Saskatchewan Premier Scott Moe led a delegation to China last September; Alberta’s Agriculture Minister is heading there with his trade officials soon; and, in February the Manitoba government “exchanged letters of co-operation with the Hong Kong-Canada Business Association (HKCBA) and the Hong Kong Trade Development Council (HKTDC).” 

And China has responded with warm welcomes, smiles and several new agreements.

Canada will allow China to ship up to 49,000 electric vehicles (that’s just the start) to Canada, at only a 6.9% tariff rate … down from the 100% former tariff rate imposed when our auto trade was highly tied to the US; China has renewed its interest in Canadian resources (LNG/Oil/Mining); promoting increased co-operation with Canada in developing batteries, solar panels, wind technologies; building more ferries/ships; and, watch for increasing Chinese interest and investment in major infrastructure projects.

In return, China has already reduced or eliminated its former crippling ban/tariffs on Canadian canola, soy, seafoods, beef, wood products. (The 25% tariff on Canadian pork may also be reduced or eliminated too!)

And how’s this: Canadians can now enter China without a visa for up to 30 days for tourism, business and family visits.

Clearly, Trump and America’s attacks/tariffs/war on Canada have forced us to set aside … and maybe even forget … how China held our two Michaels hostage for more than 1,000 days, its abuse of the Uyghurs, the lack of human rights (FREE JIMMY LAI!!!) , it’s support for the oppressive regime in Iran and the murderous Putin and Russia in its Ukraine War.

China has made substantial inroads with Canada in a very short time … taking advantage of Trump’s terrible mishandling of this nation … and will no doubt try to expand and enhance its interests/presence/influence here even more over the next two years.

Does anyone doubt China won’t use its substantially increased investment/trade/imports ties to influence/pressure/soften Canada’s criticisms and even actions on the world stage? (In fact, I’d say that has already started!)

Amazing that Trump/US administration/people/media, as they face increased animosity and isolation in the world, haven’t noticed China’s renewed/expanding ties with Canada, are too stupid … or just don’t care.

Until the US wakes up with a strengthened, empowered, entrenched China dug in deep, right at its back door … in Canada.

It’s then that history will chastise and condemn Trump/administration for letting Canada … a once reliable, loyal neighbour and trustworthy ally slip so easily into China’s grasp!

Harv Oberfeld

🇨🇦🇨🇦Check the labels. Buy Canadian!🇨🇦🇨🇦

(Follow @harveyoberfeld on “X” for FREE First Alerts to new postings on this BC Blog.)

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