News Release
Office of the Official Opposition

   

 

Sweeney calls for return to principle of fuel price regulation

Says prices should not increase this weekend


October 7, 2005

George Sweeney, Opposition Critic for Government Services and MHA for the District of Carbonear-Harbour Grace, is calling on government and the Public Utilities Board (PUB) to recommit to abiding by the spirit and intent of the Petroleum Products Act with respect to price setting and usage of the interruption formula.

"Media reports today indicate that the interruption formula will be used again this weekend to raise fuel prices in the province," said Sweeney. "I find it completely unacceptable that consumers continue to be faced with uncertainty leading into the Thanksgiving Day long weekend. The principle of fuel price regulation when it was implemented was based upon providing stable prices over a month long period so that consumers would not face price fluctuations.

"I see no legitimate reason to raise prices three or four cents this weekend when prices will be set on October 15th for a one month period. The interruption formula may allow for an increase based on pricing trends, but unless a legitimate break in supply is imminent, prices should be held at current levels until the middle of the month.

"Greater leadership is necessary at the Petroleum Products Pricing Office, the PUB and the Department of Government Services to assess each possible interruption and determine the necessity of raising prices. Now that the large price fluctuations caused in the international marketplace due to hurricanes Rita and Katrina in the United States have been passed on to consumers, it is time to get back to regulating fuel prices monthly.

"Consumers are sick and tired of waking up each morning wondering if fuel prices have fluctuated from the day before. If government is committed to fuel price regulation in this province, then the usage of the interruption formula four or five times each month cannot take place as it has over the past several months."

 

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