News Release
Office of the Official Opposition

   

 

Sweeney calls for investigation of legal price gouging

Wants immediate involvement of Minister

September 7, 2005

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."

 

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