‘It’s disgusting:’ Doug Ford lashes out at oil companies over double-digit gas price hike

Premier Doug Ford lashed out at the gas companies for the double-digit overnight increase in the price of gas across the GTA, calling it unacceptable and disgusting.

Speaking at an unrelated announcement in Oakville, Ont., on Thursday, Ford took a moment to vent on behalf of “16 million people” across the province.

“You go out last night and you’re sitting there for 20 minutes in the lineup to get gas. It’s unacceptable,” said Ford. “Everywhere I was going it was a $1.59. You wake up this morning and it’s $1.80. It’s absolutely disgusting.”

Prices at the pumps surged 14 cents overnight to 178.9 cents/litre at most GTA stations. Analysts attribute the increase to the annual changeover from winter gas to summer gas.

“The oil companies probably began summer gas production in early March and needed to blend it with winter gas until the final mix was up to summer gas specs,” explained Roger McKnight, the Chief Petroleum Analyst with En-Pro International Inc. “This means that the gas bought in March was a bargain being a blend of expensive summer and inexpensive winter product.”

“Gasoline tends to evaporate under warm summer conditions which produces smog and other emissions. The U.S. mandated that gasoline produced in the summer months must be reformulated to lower the risk of higher emissions. This means higher refining costs and these are passed on to the consumer.”

That explanation, Ford said, was simply a way for the gas companies to gouge people.

“It’s absolutely disgusting what the oil companies are doing,” said an agitated Ford as he questioned whether the gas companies are waiting for the tanks to drain at gas stations before filling them up with the new summer formulation. “Or are you using the old gas and charging the higher cost.”

“I have my opinion that it’s not physically possible to drain every single gas station to put the fresh stuff in. So either you’re putting the fresh stuff in last month or you’re gouging the people right now.”

Ford went on to say that after consulting with some friends in the United States, he found that gas prices were trending around $3.80 per gallon. “Folks, let’s do the math – it’s a $1.80 (a litre) that’s $7.20 (a US gallon).”

Mike Eppel, 680 News Radio Toronto Senior Business Editor, says it also comes down to a refining capacity issue in this country.

“So there’s lots of oil, that’s not the issue – oil supplies are high. It’s the refining capacity. We haven’t had a refinery built in eastern Canada since whenever – you can’t get a pipeline built. And anytime there is any disruption in the system, up goes the price for gas.”

Ford did not limit his anger on rising gas prices to just the oil companies, closing his rant by taking a shot at the federal government’s carbon tax, which took effect on April 1 and pushed gas prices up three cents a litre.

“This goes back to the federal government sticking their hands in the people’s pockets, they don’t care that we have some of the highest prices in North America on the carbon tax, they jack it up 17.5 per cent,” explained Ford. “And then of course the oil companies thought they’d hop on board, no one’s going to notice, because if I remember … just a few months ago I remember filling up for $1.30 to $1.34. Did the barrel of oil go up 30 per cent? The answer is no. So where is the 30 per cent.”

While the price of gas is expected to fall by four cents/litre on Friday, prices will continue to fluctuate with no real relief in sight until June or July.