Editing National Energy Program (section)

==Abolition==
The rationale for the program weakened when world oil prices began a [[1980s oil glut|slow decline in the early 1980s]] and collapsed in late 1985. A phased shutdown was commenced by [[Jean Chrétien]], then Minister of Energy, Mines and Resources.

In the [[1984 Canadian federal election|1984 election]], the [[Progressive Conservative Party of Canada|Progressive Conservative Party]] of [[Brian Mulroney]] was elected to a majority in the [[House of Commons of Canada|House of Commons]] with the support of Western Canada after he had campaigned against the NEP. However, Mulroney did not eliminate the last vestiges of the program until two-and-a half years later, when world oil prices had dropped below pre-1980s levels (as adjusted for inflation: see Long-Term Oil Prices, 1861–2007).

On June 1, 1985, after extensive discussions between the federal Government and the governments of the oil-producing provinces, the "Western Accord on Energy" was agreed.{{Dead link|date=April 2020}}<ref name=OilFreedomDay>{{cite news |url=https://www.albertaoilmagazine.com/2009/06/oil-freedom-day/ |title=June 1, 1985, marks the day the Western Accord on Energy – and an open market – took over |author=Staff writers |work=Alberta Oil Magazine |date=2009-06-01 |access-date=2018-03-09 |archive-url=https://web.archive.org/web/20180623121257/https://www.albertaoilmagazine.com/2009/06/oil-freedom-day/ |archive-date=June 23, 2018 |url-status=dead }}</ref> It provided for the full deregulation of oil prices and for allowing the market forces of international and local supply and demand determine prices.<ref name=OilFreedomDay/> Included in the full deregulation of domestic oil prices, the Western Accord also "abolished import subsidies, the export tax on crude and oil products, and the petroleum compensation charge. It also phased out PIP grants and the PGRT. In addition, controls were lifted on oil exports."<ref name="Budget_1985">{{citation |url=https://www.budget.gc.ca/pdfarch/1985-pap-eng.pdf |title=Budget 1985 |date=23 May 1985 |access-date=22 October 2019 |first=Michael H. |last=Wilson |location=Ottawa, ON}}</ref>{{rp|12–15}}<ref name="OAG_2007" />