A Long-Term Approach to Sustainable Fuel Prices
May 21, 2008

OTTAWA – Canadians across the country are feeling pressure from increased gas prices. “With current national averages are around $1.30 per litre people are looking for relief and we are doing what we can,” said Leon Benoit. “But if the Liberals were in power we would all be paying $2.25 or more for a litre of gasoline because of Mr. Dion’s carbon tax that he would impose on Canadians,” explains Benoit.

“In addition Stephane Dion has said that ‘reducing the use of cars could improve the quality of life for many Canadians’. To this I ask which Canadians he is talking about? I know my constituents will not be better off if he were ever elected as Prime Minister because his carbon tax will push gas to levels 60% higher than today’s prices. My constituents will not be able to drive to the grocery store and it will become too costly to run farm machinery or run other farm inputs. So how is their quality of life improved?” asks Leon Benoit. “The Conservative plan for the environment will do more to keep the environment clean and will not kill businesses and destroy jobs.”

Jack Layton and the NDP claim they would like to see something done about rising fuel prices but they supported Liberal Bill C-288, under which gas prices would rise 60% above today’s prices. Jack Layton also wants the federal government to force oil companies to rationalize price increases.

“Both the NDP and the Liberals claim they would like to see lower gas prices but their policies would drive prices far beyond the levels that we are currently experiencing,” said Benoit.

“We, on the other hand, are taking tough measures to ensure that Canadians are getting what they pay for,” states Benoit. He was referring to a recent announcement by Industry Minister Jim Prentice that the Conservative Government has ordered increased inspection of retail gas pumps across the country.

This is in response to inspection reports which showed that nearly 5% of gas pumps tested did not dispense the amount of gas that was paid for. “We have also increased the maximum a retailer can be fined when their pumps are found to be in violation from $1,000 to $10,000,” explained Benoit.

“The Conservative Government has done what it can to keep fuel prices from being even higher by reducing taxes and by putting in a program to provide competition to gasoline and diesel,” says Benoit. “The GST reduction and other tax reductions have kept prices lower than they otherwise would be.”

“The Government of Canada is also investing $500 million to develop next-generation biofuels,” said Benoit. He went on to explain that the current capacity of Canada’s biofuel industry has not reached the point where it can provide serious competition to fossil fuels but as the industry expands, it will provide competition and keep prices lower than they otherwise would be.

“In the long-run, biodiesel, ethanol, and other renewable fuels will help control rising fuel prices by providing effective competition to diesel and gasoline,” concluded Benoit.