NL Digital Government and Services Minister Sarah Stodley, seen here in a photo file, says the Newfoundland and Labrador gas pricing process is a “mysterious bucket.” (Mark Quinn / CBC)
As Newfoundlanders and Labradors cope with high gas prices that seem to change without warning, the provincial government says it is trying to make the process of setting those prices more transparent.
NL Minister of Digital Government and Services Sarah Stodley says the amendment to the Petroleum Products Act aims to reveal how fuel prices are set in Newfoundland and Labrador.
“We fully understand how frustrating it is when fuel prices rise and fall. We understand how challenging it is not to be able to access a transparent breakdown of what makes up these prices,” Stoudley said.
“The day-to-day implementation of these rules is monitored and implemented by the Public Utilities Council (PUB) and this is what we are trying to demystify with the changes we have proposed.”
Gas prices in Newfoundland and Labrador reached a new record on Tuesday after months of fluctuations the government attributed mainly to market forces and global factors such as Russia’s invasion of Ukraine.
As a quasi-judicial council, the PUB has the ability to set fuel prices without government intervention. Stodley said the new legislation aims to make the process more transparent, rather than giving the government more voice in setting prices.
Stodley said that according to the proposed changes, PUB will have to present a clear breakdown of maximum retail and wholesale fuel prices, minimum and maximum mark-ups and price components such as distribution, transport and storage.
“It’s kind of like a bucket of mysteries right now, you know, as far as I’m concerned,” Stodley said.
Early detection of price changes can cause supply problems: PUB
PUB will need to demonstrate how these elements affect pricing and hold public hearings on the pricing process.
PUB has one planned price adjustment every week – on Thursday – but it also has the option to make irregular price adjustments in response to market conditions.
Gas prices in Newfoundland and Labrador reached a new record on Tuesday. (Axel Tardio / CBC / Radio Canada)
PUB shared an embargo on these adjustments with fuel retailers – such as gas stations – and the media just hours before the change, but did not make this information public until the adjustment was made.
“Premature publication of maximum price information on board may affect purchasing behavior in a way that could lead to margin and / or retailer margin problems and therefore potential supply disruptions,” a PUB spokesman said in a statement. via e-mail.
The spokesman said PUB does not conduct media interviews.
“Why is gasoline different?”
Calista Burridge, a retired teacher living on Lake Deere, has been accused of violating PUB’s practice of maintaining an embargo on price changes until the day of the change.
“We are all consumers of many, many products. And we have time frames that include sales or special offers, or discounts or coupons. We have deadlines to enter at that price at this time. So why is gasoline different? ”She asked.
Burridge said she had recently asked her regular gas station to confirm whether prices were rising after hearing a rumor on social media, but an official said they were not allowed to publish the information.
“Gasoline is something we need every few days, so why can’t we have information to plan our budget, to refuel?”
Dave Callahan, owner of a gas station in St. George’s, is also unhappy with the process, but said that if he released information about the embargo before midnight on the day of the planned price change, he could face consequences.
“When that happens, we are told not to lower prices and we cannot or may lose our ability to retail,” he said.
Getting answers
Natural Resources Minister Andrew Parsons said he had written to the PUB to ask for a breakdown of how fuel prices are set, but received “nothing” in response.
Energy Minister Andrew Parsons said he had asked the PUB how it set gas prices and had received “nothing” in return. (CBC)
“We are asking why we are not getting the answers we need again. So we have to take these steps to get these answers for the people, “he said.
The government has also announced a review of other legislation governing the PUB, which falls into multiple departments. In addition to fuel products, PUB also regulates electrical utilities, aspects of the automotive industry and more.
This review, which will include consultations with stakeholders such as Consumer Advocate and the PUB itself, is due to be completed this autumn.
Read more from CBC Newfoundland and Labrador
Add Comment