Advertisement

Harper government should do more to help lower gas prices: industry expert

If you had to fill up your gas tanks over the past couple of days, your pocketbook is invariably a lot lighter.

Gas prices have been surging over the past couple of weeks and are at their highest level since last September; last week the average price per litre in the country was pegged at $136.7.

The common refrain from governments is that the price at the pump is global phenomenon perpetuated by the futures markets and simple supply-and-demand economics.

In other words, 'we can't and won't do anything about it.'

[ Related: High gas prices may mean tough summer for motorists]

But a former Liberal MP turned gas price expert says that's not entirely true.

Dan McTeague, who learned the ins and outs of the Canadian gas and oil industry while in Parliament, now operates a popular 'gas price' website called Tomorrows Gas Price Today.

He says that the summer spike is a result of a lot of factors -- an overreaction by financial speculators on declining reserves, the drop in the value of the Loonie, and geopolitical turbulence in Egypt, Libya and Nigeria -- but that the Harper government has it within their powers to ease the financial burden currently felt by drivers.

McTeague says that providing more support to Canada's struggling refinery industry should be near the top of Stephen Harper's energy to-do list.

"Refineries are having a tough go of it and they don't have the strong economics to justify maintaining what they have," he told Yahoo! Canada News.

"I'm not suggesting the federal government should get involved with the refining of gasoline products but it shouldn't stand idly by and watch refineries close in the dark of the night. We've seen in Eastern Canada, that's led to higher prices at the pump more than anything else."

[ More Politics: Video mocks Stephen Harper over perceived ‘gambit’ to muzzle CBC ]

McTeauge also argues that government can do a better job regulating the industry by demanding more transparency.

He says the Tories need to follow the example of the U.S. and require the oil industry to provide a weekly petroleum status report telling Canadians what the supply is and what the demand is.

"That would give us a better idea of whether or not we have a supply and demand problem or whether we simply have a slight of hand problem," he says.

McTeague adds that the Paul Martin government actually adopted new reporting regulations for the industry in 2004 but that was nixed by the Harper government in 2006.

"Mr. Harper has some explaining to do as to why he doesn't want transparency in this industry," he said.

Finally, McTeague suggests the government should strengthen the Competition Act to allow for more independent retailers.

"When you crossover to [a community] in the United States you see three or four different gas prices. That has everything to do with vigorous competition between large players and a group independent operators in the middle," he said citing examples in Canada where large players drive independents out of the industry.

"The reason prices go up and down [in Canada] in lock-step is because the dearth of competition."

In the meantime, McTeague has some good news for weary drivers.

"The near future will see prices moderate, beginning as early as this Wednesday," he said.

"The prices we saw this past week look like the high water mark and I don't think they will go higher in the near future."

( Photo courtesy of the Canadian Press)

Are you a politics junkie?
Follow @politicalpoints on Twitter!