Opposition parties are demanding that the government take action after a report Thursday suggested Canadians are being gouged at gas pumps across the country by as much as 27 cents a litre.

The study, completed by the Canadian Centre for Policy Alternatives (CCPA), found an unjustified hike in prices after Hurricane Katrina. The study says ever since the disaster, Canadians and Americans have been paying much more at the pump than would be justified by the cost of crude oil, production and profit margins, before the devastating hurricane.

NDP Leader Jack Layton urged a government inquiry into record oil company profits and high gasoline prices.

"Despite these so-called increases in costs, actually these big companies are simply profiteering,'' said Layton. "If there is competition it's the most unusual competition I've ever witnessed, where everyone changes direction at exactly the same time.''

Gas prices have hovered above $1 a litre for in most cities across Canada for several weeks.

Although the Liberals did not intervene on the issue of gas prices when they were in power, the party also expressed concern on the issue.

Liberal Leader Stephane Dion said he felt the Competition Bureau needed increased powers to deal with the rising prices at the pumps.

"The Competition Bureau must have more tools, and National Resources must have the possibility to make studies ... to make sure nothing inappropriate is happening,'' he said.

Responding to the views of the opposition parties, Industry Minister Maxime Bernier conceded that the price of gas "is high right now,'' but felt an attempt to control gas prices was unrealistic.

"If you look at all the countries in the world, when you try to control prices it doesn't work,'' he said. "What we have now is a problem with the inventory and the stock problem in the U.S... I think in the near future the price will go down.''

Earlier, Tony Macerollo of the Canadian Petroleum Products Institute, rejected the study, saying there are a number of justifiable reasons for the price increases.

He told The Canadian Press that increased demand, speculation and the fact that many North American oil refineries postponed upgrades in the wake of Katrina are factors in the price hike.

The CCPA report said that the crude oil that is used in vehicle tanks today does not cost any more to produce than it did in 2001 when the price of gas was less than 60 cents a litre

Hugh Mackenzie, an economist researcher with the CCPA said there was a psychological barrier in Canada about paying more than $1 a litre for gasoline. But, after Katrina, the psychological factor was broken and exploited by gas companies.

With a report from the Canadian Press