Saturday, September 24, 2005
Price Gouging irrefutable evidence found!
Its laughable when politicians and in particular the Petroleum Pricing Office say they are looking for and monitoring the oil and gas industry for evidence of price gouging but as of yet haven't found any evidence?
They need look no further than their, our own back yard. Oil and gas in many of our remote communities is only brought in once or twice a year. In communities like Rigolet NL, gas is stockpiled in tanks during the summer to allow for the inaccessibility throughout the winter months due to ice conditions. When Gas was 1.30 on the Island and 1.20$ in mainland Canada Rigolet who had stockpiled their gas when it was .90$ was paying 1.74$ a litre. Now if this isn't irrefutable evidence I don't know what is? Other than maybe a smoking hole in the ground where a gas station used to be!
http://www.gasbuddy.com/
Now you would think that they would be semi impervious to the fluctuations in price like the rest of us, who rely on the local pump for our gas which is filled on a monthly basis depending on the volume of sales. So why then are the prices in these communities following the global market trend when their world only exists as a global market once or twice during the summer months?
The problem as I see it is there is no one to blame? You can bet that if OPEC was still dictating global market prices like in the 70's we would have someone to blame! But as it stands we have no one to blame but ourselves for allowing ourselves to become so dependant on world market pricing with our lack of refining capabilities.
This is especially apparent in these remote communities who are being priced gouged by our own people, businesses, and government for allowing this to happen, and continue to pay the salaries of the PPO out of the peoples coffers, for looking the other way?
Due to this “I don’t care attitude, until it impacts my little life” Rigolet is going to lose its one and only gas station because of these illusive price gouging practices? From there we are going to lose another native culture because of the unfair economic burden these our native people have to bear. Who will be forced to move to the metropolises where they will be ASSIMILATED and lost forever!
http://www.labmetis.org/
http://www.fni.nf.ca/
http://www.nunatsiavut.com/
http://www.innu.ca/
Email:
ppo_info@pub.nl.ca
They need look no further than their, our own back yard. Oil and gas in many of our remote communities is only brought in once or twice a year. In communities like Rigolet NL, gas is stockpiled in tanks during the summer to allow for the inaccessibility throughout the winter months due to ice conditions. When Gas was 1.30 on the Island and 1.20$ in mainland Canada Rigolet who had stockpiled their gas when it was .90$ was paying 1.74$ a litre. Now if this isn't irrefutable evidence I don't know what is? Other than maybe a smoking hole in the ground where a gas station used to be!
http://www.gasbuddy.com/
Now you would think that they would be semi impervious to the fluctuations in price like the rest of us, who rely on the local pump for our gas which is filled on a monthly basis depending on the volume of sales. So why then are the prices in these communities following the global market trend when their world only exists as a global market once or twice during the summer months?
The problem as I see it is there is no one to blame? You can bet that if OPEC was still dictating global market prices like in the 70's we would have someone to blame! But as it stands we have no one to blame but ourselves for allowing ourselves to become so dependant on world market pricing with our lack of refining capabilities.
This is especially apparent in these remote communities who are being priced gouged by our own people, businesses, and government for allowing this to happen, and continue to pay the salaries of the PPO out of the peoples coffers, for looking the other way?
Due to this “I don’t care attitude, until it impacts my little life” Rigolet is going to lose its one and only gas station because of these illusive price gouging practices? From there we are going to lose another native culture because of the unfair economic burden these our native people have to bear. Who will be forced to move to the metropolises where they will be ASSIMILATED and lost forever!
http://www.labmetis.org/
http://www.fni.nf.ca/
http://www.nunatsiavut.com/
http://www.innu.ca/
Email:
ppo_info@pub.nl.ca
Comments:
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Reply to my email of the above blog to PPO.
October 3, 2005
Dear Mr. -----:
Thank you for your letter concerning fuel prices dated Sept. 26, 2005.
Your frustration with ongoing high fuel prices is understandable, and let me assure you, you aren’t alone. The situation has become a global concern that has affected everyone. Even as a regulated jurisdiction, Newfoundland and Labrador is not immune from the adverse effects of these global market
conditions.
Let me begin by pointing out an inaccuracy the opening statement of your letter: “Its laughable when politicians and in particular the Petroleum Pricing Office say they are looking for and monitoring the oil and gas industry for evidence of price gouging but as of yet haven't found any evidence?” While this office can, and will, conduct investigations regarding the administration of the Petroleum Products Act and regulations throughout Newfoundland and Labrador, I believe the particular statement in question was in reference to the Competition Bureau, a federal government organization to which this office, for your own information, has also made representation about various matters on petroleum pricing in the past.
I would also like to take this opportunity to clarify that the Petroleum Pricing Office (formerly Petroleum Products Pricing Commission) became part of the Public Utilities Board in 2004, and aside from its initial start-up money in 2001, funding for this office does not come from government; rather it is based on assessment. Therefore, no government tax dollars go toward the funding of this office.
With specific reference to your concerns about the timing of fuel deliveries to your region and the prices charged for fuel to consumers, having a floating price for fuel based on the timing of deliveries would put control of fuel costs to the companies involved instead of the protection of the regulatory process. While this would result in short-terms ups and downs, load-priced deliveries would in all likelihood lead to higher averaged
prices for fuel in your community.
The regulatory role of the Public Utilities Board is to balance the interest of all stakeholders. In this way, the Board strives to set maximum prices for petroleum products that appropriately serve the interests of both consumers as well as the many facets of the industry operating in the province. These include large wholesalers, resellers, retailers and single pump/general stores in more remote locations. As you can well imagine, this is not always an easy task; however, you can be assured that we uphold our mandate and take this responsibility very seriously.
In accordance with the legislation and regulations governing this office,
adjustments to PPO benchmarks for gasoline, diesel and home heat fuel are calculated from data published in U.S. Marketscan by Platts, and propane
benchmark adjustments are calculated from data published in Oil Buyers’
Guide by Bloomberg.
Therefore, by law, local prices have direct ties to the international
markets and the events that affect their pricing performance and are not set based on whim (a good reference for market pricing can be viewed daily on www.bloomberg.com, click Market Data, then Commodities, then Energy Prices).
As you are aware, the Board is carrying out a review of petroleum pricing in Newfoundland and Labrador. This review is being carried out in consultation with all stakeholders, consumers and industry alike, and public notice has already been issued for individuals and groups who may wish to comment and/or participate through formal submission and discussion with the Board (all documentation can be viewed on the Board’s website:
ww.pub.nl.ca).
If you have not already made a submission or considered it, I would like to take this opportunity to welcome any comment or participation you may wish to contribute regarding this situation or any other issue(s) concerning the petroleum pricing regulatory practices of the Board.
I trust this answers some of your questions. If you require more information please feel free to contact our office in Grand Falls-Windsor at
1-866-489-8800.
Regards,
Michelle
Michelle Hicks
Communications Officer
Board of Commissioners of Public Utilities
Petroleum Pricing Office
P.O. Box 189
Grand Falls-Windsor, NL
A2A 1C6
Tel: (709) 489-8837
Toll-free: 1-866-489-8800
Fax: 1-866-489-8879
Website: www.pub.nl.ca
Post a Comment
October 3, 2005
Dear Mr. -----:
Thank you for your letter concerning fuel prices dated Sept. 26, 2005.
Your frustration with ongoing high fuel prices is understandable, and let me assure you, you aren’t alone. The situation has become a global concern that has affected everyone. Even as a regulated jurisdiction, Newfoundland and Labrador is not immune from the adverse effects of these global market
conditions.
Let me begin by pointing out an inaccuracy the opening statement of your letter: “Its laughable when politicians and in particular the Petroleum Pricing Office say they are looking for and monitoring the oil and gas industry for evidence of price gouging but as of yet haven't found any evidence?” While this office can, and will, conduct investigations regarding the administration of the Petroleum Products Act and regulations throughout Newfoundland and Labrador, I believe the particular statement in question was in reference to the Competition Bureau, a federal government organization to which this office, for your own information, has also made representation about various matters on petroleum pricing in the past.
I would also like to take this opportunity to clarify that the Petroleum Pricing Office (formerly Petroleum Products Pricing Commission) became part of the Public Utilities Board in 2004, and aside from its initial start-up money in 2001, funding for this office does not come from government; rather it is based on assessment. Therefore, no government tax dollars go toward the funding of this office.
With specific reference to your concerns about the timing of fuel deliveries to your region and the prices charged for fuel to consumers, having a floating price for fuel based on the timing of deliveries would put control of fuel costs to the companies involved instead of the protection of the regulatory process. While this would result in short-terms ups and downs, load-priced deliveries would in all likelihood lead to higher averaged
prices for fuel in your community.
The regulatory role of the Public Utilities Board is to balance the interest of all stakeholders. In this way, the Board strives to set maximum prices for petroleum products that appropriately serve the interests of both consumers as well as the many facets of the industry operating in the province. These include large wholesalers, resellers, retailers and single pump/general stores in more remote locations. As you can well imagine, this is not always an easy task; however, you can be assured that we uphold our mandate and take this responsibility very seriously.
In accordance with the legislation and regulations governing this office,
adjustments to PPO benchmarks for gasoline, diesel and home heat fuel are calculated from data published in U.S. Marketscan by Platts, and propane
benchmark adjustments are calculated from data published in Oil Buyers’
Guide by Bloomberg.
Therefore, by law, local prices have direct ties to the international
markets and the events that affect their pricing performance and are not set based on whim (a good reference for market pricing can be viewed daily on www.bloomberg.com, click Market Data, then Commodities, then Energy Prices).
As you are aware, the Board is carrying out a review of petroleum pricing in Newfoundland and Labrador. This review is being carried out in consultation with all stakeholders, consumers and industry alike, and public notice has already been issued for individuals and groups who may wish to comment and/or participate through formal submission and discussion with the Board (all documentation can be viewed on the Board’s website:
ww.pub.nl.ca).
If you have not already made a submission or considered it, I would like to take this opportunity to welcome any comment or participation you may wish to contribute regarding this situation or any other issue(s) concerning the petroleum pricing regulatory practices of the Board.
I trust this answers some of your questions. If you require more information please feel free to contact our office in Grand Falls-Windsor at
1-866-489-8800.
Regards,
Michelle
Michelle Hicks
Communications Officer
Board of Commissioners of Public Utilities
Petroleum Pricing Office
P.O. Box 189
Grand Falls-Windsor, NL
A2A 1C6
Tel: (709) 489-8837
Toll-free: 1-866-489-8800
Fax: 1-866-489-8879
Website: www.pub.nl.ca
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