WINNIPEG: High gas prices are the result of a ridiculously high tax burden, not oil company collusion, the Canadian Taxpayers Federation (CTF) said today.

The Federation pointed out that gas taxes are 26 cents per litre, representing 40% of today's pump price. "Consumers are being gouged alright, but not by the big bad oil companies or local retailers. "Motorists are right to be angry about high gas prices but the frustration is often misplaced. It's government that's putting the screws to us," said Victor Vrsnik, CTF provincial director.

Vrsnik stated that the only component of gasoline prices that has increased over the years is the tax component. Gas prices, adjusted for inflation actually fell by 26% between 1957 and 1995. Meanwhile, gas taxes rose 86% in the same period. Unfortunately, Ottawa returns only 5 per cent of the $5 billion they collect each year in fuel taxes back to the provinces for road development and construction," said Vrsnik.

"The road to lower gas prices is paved with tax cuts," said Vrsnik. The CTF reiterated its call for lower prices through a strategy that includes:

A reduction of federal and provincial fuel taxes to levels commensurate with highway funding;

Dedication of fuel tax revenues to highway construction and maintenance;

Elimination of GST and HST charges on the tax component of the pump price;

Elimination of municipal tax levies at the pump; and

The encouragement of service stations to post pre- and post-tax prices on appropriate exterior signage.