Canadian Trucking Alliance

Canadian Trucking Alliance

May 12, 2011 15:31 ET

CTA Applauds Formation of Parliamentary Committee: Industry Would Like Public Explanation of What to Expect Going Forward With Biodiesel Mandate

TORONTO, ONTARIO--(Marketwire - May 12, 2011) - The Canadian Trucking Alliance (CTA) applauded the announcement made today by the Honourable Tony Clement, Minister of Industry regarding his request that refiners, distributors and retailers to come to Ottawa to appear before a parliamentary committee and explain their pricing methods to Canadians.

"As the main user of diesel fuel in Canada, my members have a particular interest in hearing the statements made by the oil industry on the matter of pricing," said CTA CEO David Bradley.

Diesel prices in Canada have been on an upward tear for about two years and recently were within shouting distance of the average price of diesel fuel for 2008, the year that record prices were recorded. Retail prices for diesel have escalated by over 27 per cent over the past year. At the wholesale level (as measured by the average rack price) prices are up by over 30 per cent during the same period.

Of particular interest to the trucking industry will be the answers by the oil and gas sector to the questions regarding the impact of the federal governments' biodiesel mandate on pricing beginning this July.

"With limited access to domestic biodiesel feedstock, lack of blending facilities and the introduction of transportation challenges, the trucking industry has been kept in the dark regarding price impact on diesel fuel, added Bradley. Hopefully this process will shine the light on the true pricing impact of the July 1 mandate, and force members of parliament to come to grips that they will be exasperating an already difficult situation as it relates to diesel prices."

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