Monday, September 22, 2008

Time To Give IRAC notice...

For years I've been preaching to send these guys packing...IRAC costs Millions of taxpayers’ dollars to run and what do we all get for it...nothing. Free enterprise works the best and will always keep prices lower. Premier Binns told me he wouldn't touch IRAC as he was afraid that all the small rural gas stations would close if IRAC was disbanded...well they are closing anyway and the silly rules that IRAC have prevent new ones from opening. I know if the Government would make it easier for Companies like Loblaws, Sobeys, Canadian Tire, and Wal-Mart to invest in some new gas bars then they would ultimately drive down prices through competition. New investment would put pressure on the existing operators to provide more service...what could possibly be wrong with having a half dozen new gas bars at $1,000,000.00 a pop be bad for PEI? Think of the construction jobs, the property taxes they would have to pay, and the employment they would create +++ plus lower gas prices... It's time the Ghiz Government relaxed the regulations and red tape that Islanders have to put up with and a good start would be by winding up IRAC....
IRAC cancels eight hour advisory on gas prices
Transcontinental Media
The Island Regulatory and Appeals Commission (IRAC) will no longer be issuing news releases at 4 p.m. letting Islanders know what the price of various types of fuel will be eight hours later. That’s the word from Moe Rodgerson, IRAC’s chairman. Regular price adjustments will still be made every two weeks, but only retailers will know in advance of the change. Rodgerson said the system was “unfair” to gas station operators and anyone selling fuel, including heating oil. Situations have arisen where retailers would buy their supplies on the mainland at a higher price a short time earlier, only to find out prices would be going down at the pumps. Customers, who knew of the impending cuts, would hold off their purchases until the new prices were posted, cutting into retailers’ revenues. Home fuel companies have complained about customers who would time their order based on the eight hour difference, and often many distributors would be faced with irate callers, angry they couldn’t get fuel deliveries within hours, just before the lower price change. Earlier the P.E.I. Petroleum Marketers Association had approached IRAC seeking to change the system to weekly pricing. That request was denied. The number of businesses selling gas on the Island is 98, down from 135 in 2000.

5 comments:

Anonymous said...

Free enterprise has done so well in the financial markets on wall street, not.

Anonymous said...

I'm surprised you have not commented on Wall Street...

Anonymous said...

In our age all what this will take is one gas station employee and a blog or forwarded email chain to get the same word out.

I agree with you, get rid of IRAC. It is a useless waste of taxpayers' money.

Anonymous said...

Competition has nothing to do with the price of oil. Do you really think a population of 130,000 can affect the price of crude?

Anonymous said...

I live in Halifax where there are many, many gas bars and stations and the price is always at least 5 cents HIGHER than PEI.

Gas is not sold on a competitive basis... if it was you would see different prices at differnt stations. Gas companies, banks and insurance companies are not interested in competition...they are interested in gauging the consumer to maximize profits.