A new report by the Auditor General into the pricing of gas and other fuels on the Island is calling for more transparency in the process.
A committee that includes the Finance Minister, Opposition Leader and Speaker, asked the Auditor General’s Office to examine IRAC and the price setting process.
The report suggests IRAC needs to develop a process that better documents the information being considered when it sets the prices, and needs to make that information more transparent and accessible to Islanders.
The report offers 7 recommendations:
IRAC should document and approve a policy on its methodology for setting petroleum prices;
IRAC should make its petroleum pricing methodology available to the public;
IRAC should document the key factors that support each pricing decision and clearly communicate this information to the public;
IRAC should document its review of prices and its consideration of an unscheduled price adjustment when interruption criteria in its policy are met;
IRAC should seek any necessary amendments to the Petroleum Products Act;
IRAC should develop and document policies and procedures for determining fair and reasonable margins for wholesalers and retailers;
IRAC’s process for assessing and reviewing applications for margin increases should be transparent to wholesalers and retailers.