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Sweeney demands answers on fuel price regulation Why are consumers being gouged by companies and government? October 24, 2005
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George Sweeney, Opposition Critic for Government Services and MHA for the
District of Carbonear-Harbour Grace, says he has done a comparison of
gasoline prices in several jurisdictions across Canada and wonders why oil
companies are being allowed to gouge consumers in this province through
prices that are regulated at artificially high levels. "Consumers in this province have been overpaying for gasoline over the past number of weeks and government has to do something about it immediately," said Sweeney. "Gas price regulation had been working in this province for the past number of years, but for some unknown reason, we are being gouged by companies and government is allowing it to happen through the current regulated prices. "I have examined gas prices in other Canadian cities this morning and the results are frightening. There is not one other capital city in this entire country paying a dollar a litre for gasoline. In fact, the average price of gas is almost 15 cents a litre lower on average in other capital cities compared to what is paid in St. John’s this morning. Without regulation, consumers in Halifax are paying nine cents a litre less than consumers in St. John’s. "An interruption in prices took place this weekend, but consumers are still paying more than they should be at this time. Last week, we were paying the oil companies a huge premium for gas over and above what other consumers in the country pay. Despite the numbers put forward by the petroleum products office, people in other provinces are paying less. If lower prices are possible there, then they can be also passed on to consumers here. Oil companies are unlikely to drop prices voluntarily when government regulates them to gouge consumers and state that they’re fair. "It is time for Minister Whalen to wake up and deal with this crisis that exists in fuel price regulation in the province. Regulation is not working today as it had in the past and she has an obligation to investigate and take action. When I raised earlier concerns, she simply stated that she had confidence in the system. I can tell her today that the system is not working and the sole responsibility lies on her government to fix the problems at that office or at the PUB." |
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