Editing National Energy Program (section)

====Price controls====
In 1974, Canada inaugurated its first system for pricing oil with three objectives: to regulate prices of domestic crude oil by federal-provincial agreements, to subsidize imported oil so that consumers in Eastern Canada would enjoy lower prices, and to control prices and quantities of crude oil and products in the exporting market. [[Synthetic crude]] oil (upgraded petroleum from oil sands) was exempted from the policy and was sold at the world price. The federal government levied a tax on all oil refined in Canada to pay for the difference between the price of synthetic and that of conventional crude oil.<ref name="OAG_2007" />

The federal budget in October 1980 reflected the concern that Canada could "become increasingly dependent on insecure foreign supplies and, therefore, unnecessarily subject to the vagaries of the world oil market."<ref name="Budget_1980" />

On 28 October 1980, Finance Minister [[Allan MacEachen]] introduced the National Energy Program but cautioned that things could get worse if there were "new shocks coming from the price of oil or food or if the upward momentum of costs and prices proves impervious to the economic climate I am seeking to create."<ref name="Budget_1980" />  
{{blockquote|"The new energy policy limits the rise in prices of oil and gas to domestic consumers and thus continues to protect us from the violent shocks of OPEC price increases. It strengthens our specific measures to promote the most economical use of energy and in particular the displacement of oil by other fuels. It provides new impetus to the development of new sources of supply, through direct government programs and through new incentives of particular value to Canadian-owned producers. Energy policy is only the most urgent element of our new strategy. Renewed growth in productivity and lower costs are needed throughout the economy. Within the overall expenditure plan which I will lay before the House, we have assigned clear priority to economic development."|MacEachen October 1980}}