Petroleum Products Pricing Act Introduced

SERVICE N.S./MUNICIPAL RELATIONS--Petroleum Products Pricing Act Introduced

Legislation that will give consumers notice of fuel price increases and government the authority to implement stronger measures if needed was tabled in the legislature today, May 13.

The Petroleum Products Pricing Act will give Nova Scotians two full days warning of gasoline, diesel and home heating fuel price increases, said Service Nova Scotia and Municipal Relations Minister Barry Barnet. A select committee of the legislature will also be established to investigate fuel pricing and supply issues in the province and report its findings by Aug. 1.

"The first thing this law will do is stop the surprises," Mr. Barnet said. "Nova Scotians will have two days notice of a price increase at the pumps. This will allow drivers time to adjust to the increase and fill up their tanks before the higher price kicks in, if they choose to do so."

Two days notice is defined as two business days, not including Saturday and Sunday. For example, notice filed at 1 p.m. Friday could not take effect until 1 p.m. Tuesday.

The minister said an all-party select committee of the legislature will be appointed to hold a public inquiry into gasoline and heating fuel prices in Nova Scotia. "If the committee recommends other measures to protect the interests of consumers, we will have the authority to do so."

The minister said the government had looked at a number of options, including full regulation of gas prices as it exists in Newfoundland and Prince Edward Island.

"The Newfoundland and P.E.I. experience is that regulation does not result in lower prices, and does not prevent prices from increasing," Mr. Barnet said. "Their systems do, however, prepare their residents for price increases. Nova Scotians realize we cannot insulate our province from the volatile global oil market. We can, however, help take the 'sticker shock' out of sudden and steep price increases by providing Nova Scotians with timely information."

Fuel wholesalers supply the province's retail gas and heating fuel market. These wholesalers, or retail outlets that are owned, operated or controlled by them, will be required to give notice of increasing gasoline and heating fuel prices through a government website. The industry will be able to lower prices without providing advance notice, but will be required to file the lower price.

Wholesalers would be required to post two days notice of the increasing price at their stations so the public would be aware of the increase.

"This legislation would also give government the authority to set wholesale and retail price levels for fuel products if, down the road, it is felt that stronger measures are needed to protect consumers," Mr. Barnet said.

Mr. Barnet said the legislature committee would include a chair and equal numbers of members from each of the three parties. Its terms of reference would include examining why fuel prices are at their current level, rationale for different prices in different regions of the province and if there is any evidence of predatory pricing practices at the wholesale and retail levels.