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Gas Bar Boycott Laudable, but Misplaced

Author: Victor Vrsnik 1999/04/28
WINNIPEG: The Canadian Taxpayers Federation (CTF) speaks out on today's planned national boycott of gas stations. Media reports confirm the existence of an Internet-based grassroots campaign urging motorists not to buy gas on Friday, April 30, 1999 in order to send a signal to the oil companies that consumers are upset about high and volatile gas prices. The Canadian Taxpayers Federation (CTF) speaks out on today's planned national boycott of gas stations. Media reports confirm the existence of an Internet-based grassroots campaign urging motorists not to buy gas on Friday, April 30, 1999 in order to send a signal to the oil companies that consumers are upset about high and volatile gas prices.

"While we applaud the sense of advocacy and share consumer frustration at high gas prices, this anger is misplaced," said CTF Manitoba Director Victor Vrsnik. "The real targets of any consumer outrage should be federal and provincial politicians. Combined taxes from these two levels of government for about 50% of the pump price."

"Follow the money. If you fill up with $20 of gas this evening, about half is going to government," added Vrsnik. "Gas taxes are supposed to be a user fee for road development and transportation initiatives, but the feds only return 6% of the $5 billion they collect each year to the provinces for road and highway improvements."

The outcry against local gas retailers has shielded government from justifying its own consumer gouging. The Provinces' gas tax take is on average 13.5 cents/litre while Ottawa siphons off 10 cents/litre plus GST.

CTF research reveals that the gas price, once adjusted for inflation, actually fell 26% between 1957 and 1995. Meanwhile, gas tax rose 86% in the same period.

The CTF will launch a public awareness campaign in May including the 1st annul Gas Tax Honesty Day on May 20th to protest Canada's excessive gas taxes and poor road development.

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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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