Gas profits are high enough
Published Tuesday October 7th, 2008
By allowing the Energy and Utilities Board (EUB) to even consider increasing the profit margin for gas and heating oil retailers and wholesalers, the provincial government is abdicating its responsibility to citizens: a responsibility to ensure citizens who absolutely rely on these essential products do not become victims of the oil industry's avarice.
That is what the EUB, itself entirely a creation of the provincial government and operating on guidelines established by the provincial government, should be doing. Instead it is considering whether it should allow more oil industry gouging.
There is no justification for increasing profit margins. The industry has incurred jaw-dropping record profits in the tens of billions of dollars in one quarter alone. If it is not allowing its retailers and wholesalers (many owned by the same industry members) a reasonable level of profit, then solution is clear and obvious: it should do so out of its own pocket. Otherwise this merely becomes a matter of one arm of oil giants squeezing another arm to justify to a regulator that its third arm isn't profitable, thus allowing more gouging.
As gas and heating oil prices increased, consumers were told again and again that it was because the price of oil was rising; yet now that price of oil is declining significantly, the corresponding drop in gas and heating oil is not being seen and consumers are being told the price has little or nothing to do with the price of oil. The industry's credibility is shot.
Here in New Brunswick the provincial government has to date allowed the EUB to do the industry's bidding. But is that changing? We are heartened by Premier Shawn Graham's indication Monday that he intends to protect consumer interests and ensure the tax break he gave on gas isn't swallowed up by the oil industry.
Meanwhile, the has indicated his government will have a plan to help the most needy get through the winter with heat, but has yet to indicate with how much assistance. The time is here to do so as temperatures at night are now hovering close to zero.
Citizens are waiting for action, not another artificial increase in the cost of heat and fuel. It is time for the premier to make his move.
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I bet they wont have to choose between food and heat this winter
How the heck will Graham (or any government ensure) the giant oil companies will not swallow up any tax break? That goes against all the 'free market' princples!! The credibility of these companies was shot a long time ago but they still gouge the population with the protection & approval of the EUB!!
When Petro Canada was being formed with the encouragement of Pierre Trudeau's government, one thing Trudeau stated (to the effect) Canadians will not be at the mercy of off-shore oil companies. Oops, we are still being held for ransom by them including Petro Canada!!
Governments are hog-tied to help citizens by these major players. Government posturizing is a 'smoke screen' and they know it. Proof in the pudding is Petro Canada!!
Canada has got to control its own destiny in ensuring Canadians do not get left out in the cold by these global companies. We have a large supply of that product; it should be Canadians first before we sell to the USA or any other country!!!