News Release
Office of the Official Opposition

   

 

Gas prices fail to go down and government fails to act

Liberals demand changes to pricing legislation

April 22, 2005

George Sweeney, Opposition Government Services Critic and MHA for the District of Carbonear - Harbour Grace, says gas prices should have been reduced today, but no changes were made because the Minister refuses to makes changes to the current pricing legislation.

"Consumers in this province expected the Petroleum Products Pricing Commission to announce that the price of gas would be cut last week and again today," said Sweeney. "Instead, this morning we again hear that the price will remain high because the regulator’s hands are tied due to problems with the legislation.

"The Minister has an obligation today to tell the public that her office will review the provisions of the Petroleum Products Pricing Act to ensure this situation never occurs again. It is not acceptable for this Minister to turn a blind eye to oil companies that are gouging consumers based on a loop-hole she refuses to close.

"Government has an obligation to protect consumers in this province, not the large oil companies that are experiencing record profits. I am calling on the Minister to act now to change the Petroleum Products Pricing Act to fix the current problems. The office should only be allowed to use the interruption formula when there is a threat to supply and an investigation takes place. The Minister must also consider why prices were allowed to increase last week and stay high this week even though world oil prices that have fallen substantially over the past several weeks.

"If the Minister needs further evidence of the abuse of the interruption formula since her government has taken office, she should just look at the facts. Since her government took office, the interruption formula has been used 13 times and only once did it allow for prices to be reduced. This record speaks for itself and is simply not acceptable. A double standard exists where prices go up quickly to protect the oil companies, but do not go down when consumers need protection.

"The Minister has the ability and the obligation to make changes to this legislation to ensure consumers in this province receive the same cost savings being experienced by consumers across the country as the price of oil declines."

 

Media Contact:
Jeff Mackey
Caucus Communications
Office of the Official Opposition
709-729-6427