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George Sweeney, Opposition Critic for Government Services and MHA for the
District of Carbonear-Harbour Grace, is calling on Minister Dianne Whalen to
investigate reports of gasoline price gouging in Newfoundland and Labrador.
"There have been numerous reports over the past number of days that
consumers in this province are being gouged by oil companies," said Sweeney.
"Using the interruption formula, prices jumped 40% last week following the
strike of Hurricane Katrina in the United States. Following this unexpected
jump, prices across Canada have receded somewhat and are now 20 cents per
litre lower than they are in this province and immediate action must be
taken."
Recent reports have stated that oil companies in Nova Scotia have been
charging below the maximum posted prices and the pump price survey released
yesterday by M.J. Ervin and Associates Inc. indicates that the average price
of gasoline in Canada is $1.26 per litre.
Sweeney says this is another example that validates his earlier concerns
that the interruption formula has not been used to the advantage of
consumers and that changes must be made. "Consumers in other provinces are
paying much less for gas than consumers in this province because government
regulations are encouraging oil companies to price gouge. Immediate changes
are needed to the interruption formula to bring prices down quicker when
large price fluctuations occur as they have this week.
"The Minister of Government Services has turned a blind eye to consumer
concerns related to fuel price regulation simply because the Public
Utilities Board is responsible for enacting the legislation. There is an
active role and obligation for Minister Whalen to investigate reports of
price gouging and the inadequacy of petroleum regulation in the province to
deal with unforeseen world events."
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