Madam Speaker, in late April gas stations across Canada raised prices as much as 10 cents a litre. It was the sixth price increase of gas in 11 months.
These increases excluding tax increases represent a 20 per cent increase in the price of gas to consumers. What is even more startling is that oil companies have seen a 40 per cent increase in their revenues once taxes are factored out in the same period.
There has been no reasonable justification by the oil companies for these repeated increases. Each year since 1991 the average daily price of crude has declined. Crude prices today are virtually the same as they were a year ago with the 11 months in between seeing lower prices.
The profits of the major oil companies including Imperial Oil, Shell and Petro-Canada have increased each year over the past three years. In 1994 Imperial Oil profits went up 29 per cent; Shell went up 43 per cent and Petro-Canada went up 62 per cent.
When gas prices have risen they have risen uniformly from company to company in each region within hours of each other. Consumers are outraged and believe strongly that they are again the victims of price gouging at the pumps and price fixing by the oil companies.
This latest series of price increases is nothing more than a cash grab by the major oil companies that monopolize the industry.
In a recent court case in Ottawa a gasoline retailer, Mr. Gas, admitted communications between gasoline retailers are common in the industry when setting prices. What this means is if smaller chains set prices, certainly the majors do.
This latest increase in gas prices represents an extreme polarization of power and wealth into one sector, multinational oil companies. This increase is also extremely bad timing for farmers who are seeding their crops.
The increase is injuring Canada's economic recovery and must be addressed. Every two-cent increase costs Canadian $750 million a year. These recent increases of six cents will take over $2 billion out of the Canadian economy in one year.
The federal government must intervene in arbitrarily rolling back gas prices until a full energy price review can take place to ensure these increases are fair and justified.
In my question to the Minister of Industry on April 28 and on May 3, the minister commented: "When the prices are the same, it is consistent with both competition and price fixing. Therefore how do you know which it is?" I suggest that if one does not know the difference that in itself demonstrates the need to conduct an investigation.
The House of Commons is elected to ensure Canadians are not victims of the marketplace and to ensure the interests of Canada are protected. A gas price review would send a clear message to the oil companies and to Canadians that in a key economic sector such as energy fairness must prevail and significant price increases must be justified.
The setting of energy prices is no different than the regulation of communication services. When Rogers cable or Bell Canada want to increase prices, the CRTC reviews their request to ensure they are fair and justified. Having the oil industry justify its increases is no different. Gas prices are viewed by the public as being set unfairly and unjustifiably and must be reviewed and regulated.
The government has the power to question industry on its pricing practices and to create new laws that would demand gas price increases be made only after justification.
Why do the Liberals refuse to act in the best interest of Canadians? The federal Liberal Party receives substantial donations from the oil companies. Husky Oil donated $14,000; Amoco, $27,000; Imperial Oil, $47,000. Is this the reason the government will not conduct an investigation into gas pricing? Is the Liberal Party concerned it will offend its top party donors? He who pays the piper calls the tune. The government-