News Release
Office of the Official Opposition

   

 

Oil prices down for three weeks

Whalen refuses to allow drop in the price of gas

May 3, 2005

George Sweeney, Opposition Government Services Critic and MHA for the District of Carbonear - Harbour Grace, says Minister Dianne Whalen has an obligation to bring forward legislative changes to the Petroleum Products Pricing Act to lower gas prices more quickly.

"The price of gas in this province has been at record levels for the past three weeks, despite world oil prices that have been at their lowest point in recent months," said Sweeney. "We had a situation in this province last week where oil companies themselves were voluntarily dropping gas prices in the Avalon region. This indicates to me that regulated prices are certainly not being regulated to benefit consumers.

"The Minister refuses to show leadership on this issue and, as a result, oil companies are allowed to make record profits on the backs of consumers in this province. When prices were set on April 15th, the commission stated that the formula mandated by government caused the last increase in prices.

"The legislation must be changed to allow prices to go down in situations like we have today because the current formula obviously does not work as it was intended. Government must also put some teeth into the interruption formula so that it is limited to situations where real interruptions in supply exist.

"The price of oil has retreated from highs set in March, yet consumers continue to pay through the nose. I have demanded leadership from this Minister on a number of occasions and I will continue to press her for action. It is time she stood up to big business and represented the views of consumers in this province by changing the Petroleum Products Pricing Act in the House of Assembly this spring."

 

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