Industry Minister Tony Clement’s gas price strategy doomed without tax cuts

Donald Trump told CNN's State of the Union last month lowering the price of gas is as easy as telling OPEC members to lower the price of oil.

Last week, Canada's Industry Minister Tony Clement said he'll get to the bottom of high fuel prices here through a parliamentary committee process.

"We are hearing the questions and concerns Canadians have about fluctuating fuel prices," he said in a statement. "That is why I will be asking refiners, distributors and retailers to come to Ottawa to appear before a parliamentary committee and explain their pricing methods to Canadians."

Unfortunately, both Trump's and Clement's tactics have about an equal chance of success. In other words - they have no chance.

Surging gas prices are a global phenomenon perpetuated by the futures markets and simple supply-and-demand economics.

Canada is not the only country feeling the gas pain. While prices of premium gas in here range from $1.20 per litre to $1.60, other countries have it worse - a lot worse.

As of May 2, according to a list compiled by the U.S. Energy Information Administration, the retail price of premium gas around the world per litre in Canadian dollars was as follows:

Belgium: $2.31, France: $2.22, Germany: $2.34, Italy: $2.23, Netherlands: $2.45, UK: $2.21 and the U.S.: $1.08.

A CNN.com report found the main factor in price disparities between countries is government policy. Many European nations tax gasoline heavily, with taxes making up as much as 75 per cent of the cost.

Gas taxes in Canada range from 22 cents per litre in the Yukon to 40 cents in Vancouver. Torontonians pay just over 30 cents per litre in tax.

Clement will likely continue to challenge oil producers, but if he's really interested in giving relief to Canadians, he'll start by cutting federal taxes.

(CP Photo)