I hadn't heard that they had started doing this..... the government just doesn't seem to get it.
http://www.news1130.com/news/national/a ... t=n071143A
$this->bbcode_second_pass_quote('', ' ')New Brunswick gas stations turn off pumps to protest price regulation
11, 2006 - 1:07 pm
By: KEVIN BISSETT
FREDERICTON (CP) - Some motorists across New Brunswick had to search for gas Tuesday after almost 100 independent gasoline retailers turned off their pumps for several hours to protest price regulation.
Service station attendants told motorists they had no fuel to sell, or that they couldn't afford to sell it at the regulated price set by the province's Conservative government when regulation came into effect on July 1.
"I'm just getting ready to go on vacation today and we're hearing this could be across the province," said Carmella Hill as she was turned away from an Esso station in Fredericton.
Some stations that remained open had line ups because of vehicles diverted from other locations.
Kevin McCann, the New Brunswick sales manager for Wilson Fuels, said independent retailers operating under the Ultramar, PetroCan, Shell, Esso and Wilson banners took part in the protest.
Most had begun pumping gas again by mid-afternoon.
Angela Andrews went to three gas stations in Fredericton before finding pumps that were working.
"I think the government should let the gas stations set their own price, if they want to raise it or lower it," she said.
The province set a maximum price of $1.12 a litre, but has allowed retailers to add a couple of cents to cover transport costs.
However, the retailers say the government has done nothing to ensure there is a profit margin when refinery and wholesale prices rise.
The formula used to set the price allows for a six-cent-a-litre profit margin for wholesalers and five-cents-per-litre for retailers.
McCann said there's not a lot of choice when there are only two refiners in the Maritimes.
"You've got Esso or you've got Irving, and guess what? Their pricing is virtually the same," he said.
Energy Minister Brenda Fowlie defended the new regulation system but she also opened the door to possible changes to the legislation.
Fowlie said she's willing to allow the dealers and wholesalers to renegotiate their contracts and profit margin, but it has to stay within the 11-cent range set out in the legislation.
"If the retailers and wholesalers feel they can't work within their margin percentage, one or all could make application to the Public Utilities Board, and if they were successful it would apply to all wholesalers and retailers in the province," she said in St. John, N.B.
But McCann said the minister is starting with the wrong reference point because the government uses the benchmark price of oil sold in New York when setting the maximum price for gas in New Brunswick.
"She's using New York Harbour, and we don't buy New York Harbour, and none of the other wholesalers in the province buys New York Harbour, they buy off the Saint John rack, so that premise is out the door even before we get started," he said.
The New York price is about 3.3 cents a litre lower than the Saint John rate.
The Nova Scotia and Prince Edward Island government's also use the New York rate to set their regulated prices, but McCann said both have set maximum pump prices at about $1.15 a litre.
"That extra 2.5 cents goes a long way in this business," he said.
The federal Liberals consumer affairs critic said Premier Bernard Lord should be lobbying Ottawa for changes to the Competition Act because there are only two wholesalers in the province.
"With a dysfunctional gasoline market in which one or two players basically control the price at wholesale you have a very serious situation," said Dan McTeague, an MP from Ontario.
"They inflate the refinery price and they compress the retail price to such an extent that the retailers go out of business."
Meanwhile, Tom Adams of the Toronto-based research group Energy Probe said the government can't ensure lower prices for consumers in the long term through regulation.
"There's nothing that politicians or regulators can do beyond tax relief to change the game," he said.
Rick Brewer, a Liberal member of the legislature who leads an Opposition task force on petroleum pricing, said the province rushed regulation without weighing all the possible repercussions.
"The premier said that if this didn't work he would pull the regulations back off the table," he said. "How long will the premier make New Brunswickers suffer by not getting a commodity like gasoline, which is a necessity today."
Gas prices in New Brunswick are about the middle of the pack in Canada.
According to the weekly survey of pump prices by M. J. Ervin and Associates issued on Tuesday, the highest prices was in Whitehorse at $1.22 per litre.
The lowest price was about $1 per litre in St. Catharines, Ont.