Feds, province playing ping-pong over gas prices

Gasoline pricing is becoming a political hot potato as the federal and provincial governments banter over who should do something about the high cost of gas in Northern Ontario.
In a report released to caucus last week, the federal Liberal Committee on Gasoline Pricing in Canada recommended the province consider making Northern Ontario prices the same per litre as in southern Ontario, plus “justifiable” transportation costs.
Local MP Bob Nault noted gas ranged between 49-52 cents per litre in Ottawa, and was 53.9 in Toronto. But in Rainy River District, it runs between 63-65 cents.
The Liberal committee found transportation costs shouldn’t be that much higher.
“Our difference in cost should be two-and-a-half to three cents,” Nault argued. “We are held hostage by our geography.”
“Constitutionally, the provinces have the authority to regulate prices,” noted Harry Chandler, deputy director of the Competition Bureau, noting the Competition Act sets out the rules for competition and marketing.
But the province, which has set up a watchdog committee to monitor prices at the gas pumps, doesn’t want to regulate the price and is calling on Ottawa to do something.
“We don’t want to regulate prices. We don’t believe it’s the right approach,” noted committee chair Lillian Ross, MPP for Hamilton West and parliamentary assistant to Consumer and Commercial Relations minister David Tsubouchi.
Ross said by putting gas controls in the east, some provinces actually drove up the price.
Instead, the “gas busters” committee is going to continue monitoring prices, meet with the stakeholders and consumers, and make a report to the minister in the fall.
“The objective of our committee is to make sure we have consistency across the province,” Ross said, but added they hadn’t determined where or when they would come north.
Ross also noted the committee was taking a look at the Liberal report but said she needed more time to look at it.
Meanwhile, the higher prices here are still driving people across the border to fill up even with the Canadian dollar hitting record lows of late. International Falls Mayor Jack Murray said Friday that he still was seeing quite a few Ontario plates at the pumps there.
Kenora MPP Frank Miclash (Lib.) said this is the exact reason why he’s been calling on the province to appoint an independent consumer advocate.
“There’s so many unanswered questions. Nobody seems to want to pick up responsibility for it,” he said Friday.
“I think [this report] is a step in the right direction,” he said, arguing this “in-depth analysis” was much better than the province’s four MPP “gas busters” running around with cameras.
“I think it’s a joke and an insult to everyone’s intelligence,” he charged.