News Release
Office of the Official Opposition

   

 

Sweeney pleased with PUB review but says government must act now to deal with high fuel prices

July 27, 2005

George Sweeney, Opposition Government Services Critic and MHA for the District of Carbonear - Harbour Grace, says it is about time that Minister Dianne Whalen has ordered a review of the Petroleum Products Pricing Act, but wonders why opposition concerns were dismissed by the Minister on a number of occasions over the past two years.

"I have been calling on the Minister to make changes to the way government approaches fuel price regulation for some time now," said Sweeney. "Ever since government fired the commissioner, the interruption formula has been used far too often to gouge consumers and reward oil companies."

Sweeney has made several suggestions to improve fuel price regulation and provide further relief to consumers. "I firmly believe that government has not been tough enough with oil companies in applying the interruption formula. I have asked that policy changes be made immediately to protect the consumers of this province, yet the Minister has said in the past that she didn’t see a problem.

"When I brought forward changes to the Petroleum Products Act in 2003 to allow for interruptions to be made, I never intended for it to be abused to the extent we’ve seen it used by this government. Changes should be made to government policy or the Act to prevent interruptions from being made unless there is a true interruption in supply, not just a short-term spike in prices.

"Government must also be responsible by limiting the amount of tax it collects on petroleum products once prices reach a certain level. The Minister of Finance and the Minister of Government Services should work together to cap the tax on gasoline once it reaches a certain level. The tax on home heating fuel should be phased out over a period of time so that people are relieved of this unnecessary burden when trying to heat their homes. Right now, government is collecting windfall profits from high oil prices and these profits should be passed back to consumers."

 

Media Contact:
Jeff Mackey
Communications
Office of the Official Opposition
709-729-6427 or 685-3128