By Stephen Anstey, a Level Three Student enrolled at the Open Learning Centre in Springdale

Here we are on the Island of Newfoundland getting shafted with the price of gasoline. Yes it's understandable that folks on the mainland pay less, but who controls the price once the trucks leave the ferry at Port Aux Basque to distribute this needed product across our province? Why such a difference in price from a town on the west coast to a town on the east coast? Is the government monitoring the pumps to see that consumers are getting a fair share or just turning a blind eye and counting the high tax dollars that they are raking in from consumers? In my opinion, they are speaking just enough to keep the wolves from the door (meaning the public). They are telling us that they are going to set up an arbitration board to regulate gas prices, but they are not crossing the line far enough to jeopardize revenues the public is paying in gas tax.

In the early part of November 1991 consumers were paying around 72¢ per liter for regular gasoline. By month's end, regular gas jumped 4¢ per liter, leaving consumers disgusted with it all. Wayne Andrews, Gasoline Market Analyst with the provincial Department of Mines and Energy, said that he was told crude oil price increases were responsible for the hike at the pumps. The price of crude at the time of this research is 27¢ per barrel. Prices of crude have increased 145% since early January and the full impact of a $16 a barrel increase may not have been felt yet. Dennis O'Keefe, Chair of the Consumer Group for Fair Gasoline Prices' said, "Oil companies are doing bloody well what they want to do with regard to the consumer."

Why can't this province have better gas prices? After all, we have a refinery? The only refinery in this province is located in Come By Chance. It is owned by North Atlantic Refinery, a provincially incorporated company which is, in turn, owned by the international commodity broker and shipper Vital Refining S. A. Inc. The refinery has the capacity to process 99,750 barrels per day. When the previous owners of the refinery, Petro Canada, sold they attached a restrictive covenant to the facility. This, in turn, prevented the new owner from selling product refined at the facility to the Canadian market with the exception of Newfoundland and Labrador. As a result, the product refined here can only be sold to a relatively small market in the province. I wonder who got the better part of the deal?

What part of the price of a liter of gas goes to our government? The prices range across the province with St. Anthony selling regular gas at 78.9¢ and Conception Bay selling at 7l.9¢. So, what goes where? With gas selling at 78.9¢, harmonized sales tax is 10.3¢ the provincial government grabs 16.5¢, the federal government takes 1¢ per liter, and we are left with 17.1 ¢ for refining, marketing, retailing and distribution. A liter of gas is worth a lot of money to some people don't you think?

I wonder is it possible for enough Newfoundlanders to gather together and cause enough stink forcing government to buckle and lower provincial gas taxes? If government did give in to public pressure, where would that leave us? If the gas price was reduced to the level in other provinces, our government would lose millions of dollars in revenues, so, would we gain as a whole? Absolutely nothing? What was put in one hand would go back with the other; we wouldn't win going that route. It is better to leave well enough alone.

How about the dealers, should we be spiteful towards them? They could give us cheaper gas but that would cut into their mega profits, and we all know too well they are not going to do that. What would happen if we stop buying gas from the major oil companies? Would it put pressure on them to lower prices? Who would hurt the most? It all comes down to the consumer getting the shaft.

Big oil companies don't care. I guess they do in away, but not enough to really hurt them. Most consumers come from very small towns where there's only one big name service Station. Boycotting that gas Station's prices would do more harm than good. People need to get around, they need to work, they need to get groceries, take their kids to school, visit the hospital-no matter what the price, people will pay to do these things.

The sad fact about it is that the little guy is always getting the raw deal. Either you buy the product, no matter what the price, or do without it. Maybe, it won't be too long and the price of gas will return to an affordable level. Either way, the top dogs are getting a real piece of the pie and we are just making it sweeter.