Oil-company execs asked to explain high gas prices to Commons committee

www.canada.com SYLVAIN LAROCQUE Canadian Press Tuesday, February 18, 2003

OTTAWA (CP) - A Commons committee is demanding to hear testimony from top oil executives, explaining the recent surge in oil prices.

The Commons Industry committee unanimously adopted a Bloc Quebecois motion on Monday that calls on the executives to appear before the committee in the next few weeks. Independent gas-station operators and oil-industry analysts will also be asked to make submissions on Parliament Hill. Bloc industry critic and committee member Paul Crete said the motion will "send a message" to oil companies as gasoline prices jump and heating costs rise during a bitter winter.

"This is not a time when we can spend too much on fuel," said Crete.

"Hopefully (the committee appearance) will give customers some hope."

Gas pump prices in Canada averaged about 80 cents a litre last week - topping nearly 90 cents in the Maritimes and causing Canadians to gripe about the cost to fill up their gas tanks.

The price hike has prompted MPs from all parties to accuse oil companies of collusion and price-gouging.

The government hinted that some relief might come in Tuesday's budget, but Industry Minister Allan Rock has also said the government may adopt a wait-and-see approach.

Industry committee members refused a Bloc request to make reference, in the motion, to "collusion between the oil companies."

"It would be dishonest to accuse them and then proceed to demand that they come and explain themselves," said Liberal MP and committee member Serge Marcil.

But Marcil expressed his own doubts as to whether the hike in gas prices could be solely attributed to the ebb and flow of the market.

"The companies will have to tell us why they decided, all of a sudden, to raise the price of a litre so high and so quickly."

Crete said he was confident the committee motion would lead to an in-depth examination of business practices in the oil industry.

The committee will present a report to Parliament following its hearings, and Crete said he hopes the committee will recommend that the Competition Bureau launch an investigation.

Gas prices have risen sharply in Canada in recent months. The price jumps are attributed to a number of factors, including the threat of war in Iraq and labour unrest in Venezuela that has restricted shipments. Venezuela is the world's fifth-largest producer.