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Conservatives reject opposition call for public inquiry into gasoline prices.

Wed May 2, 5:53 PM

By Terry Pedwell


OTTAWA (CP) - Rejecting explanations from big oil companies, the opposition parties are demanding the federal government investigate why gasoline prices have been surging.

But there's little Ottawa can do to curb prices at the pumps, say the Conservatives. The NDP demanded a public inquiry after gasoline prices reached as high as $1.28 a litre in Vancouver on Tuesday, and only slightly lower in other parts of Canada. Pump prices have since dropped but remained just under $1.10 a litre in many regions.

"Yesterday, Imperial Oil reported a 31 per cent increase in quarterly profits, on the very same day that gas prices went through the roof," New Democrat Judy Wasylycia-Leis said in the Commons on Wednesday.

"So here we have big oil companies making big profits and consumers still paying big prices. It doesn't add up," she said.

"Why doesn't this government take on these big gas makers?"

Ottawa has limited ability to counter rising gasoline pump prices, said Natural Resources Minister Gary Lunn.

"There have been six federal studies of gas prices and each and every time the Competition Bureau has found there's been no price fixing," said Lunn.

"If the member has information and would like another investigation, they're welcome to bring that forward."

Lunn also cited Conservative government measures to mitigate the effects of higher gasoline prices.

"We brought in the $2-billion biofuels strategy," he told the Commons. "We're providing incentives for Canadians to purchase fuel-efficient vehicles ... and we have lowered the GST."

Rather than look at price fixing, the federal government should instead investigate why oil companies have been closing gasoline refineries, said Bloc MP Robert Vincent.

"The sharp increase in gas prices is not explained by international factors alone," he said. "It's also due to the intentional closure of some refineries.

"We know prices at the pump come under provincial jurisdiction, but can't the federal government check the profit margin of refining since that's under its jurisdiction?"

Oil companies and industry observers have blamed rising gas prices on everything from unrest in oil-rich Nigeria and tensions in the Middle East to high demand and low inventories. The cost of buying gasoline also moved higher in the United States, with an average gallon of gas at American pumps rising Tuesday to US$2.96, up nearly 80 cents US a litre.

The national average price of gas in Canada on Tuesday was just over $1.10 a litre, up nearly five cents from the average price in March, and 19 cents higher than the average price in January, said MJ Ervin and Associates Inc., a Calgary-based consulting firm.

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First quarter and annual returns for Canada's big five oil and gas companies

By The Canadian Press

Here are some recent earnings from Canada's Big Five oil companies:

Imperial Oil Limited (TSX:IMO)

Net profits 2007: $774 million. 2006: $591 million

Increase: 31 per cent

Annual net income 2006: $3.04 billion. 2005: $2.6 billion

Increase: 17 per cent

Petro-Canada (TSX:PCA)

Net profits 2007: $590 million. 2006: $206 million

Increase: 186 per cent

Excluding one-time losses/gains:

Net profits 2007: $580 million. 2006: $486 million

Percentage increase: 15 per cent

Annual net income 2006: $1.74 billion. 2005: $1.79 billion

Percentage decrease: 3 per cent

Husky Energy Inc. (TSX:HSE)

Net profits 2007: $650 million. 2006: $524 million

Increase: 24 per cent

Annual net income 2006: $2.73 billion. 2005: $2.00 billion

Increase: 26.5 per cent

EnCana (TSX:ECA)

Net profits 2007: $491 million. 2006: $1.47 billion

Decrease: 66 per cent

Excluding one-time losses/gains:

Net profits 2007: $858 million. 2006: $694 million

Increase: 29 per cent

Annual net income 2006: $5.65 billion. 2005: $3.43 billion

Increase: 65 per cent

Suncor (TSX:SU)

Net profits 2007: $551 million. 2006: $713 million

Decrease: 23 per cent

Excluding one-time losses/gains:

Net profits 2007: $539 million. 2006: $509 million

Increase: 6 per cent

Annual net income 2006: $2.97 billion. 2005: $1.16 billion

Increase: 156 per cent



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