GASPÉ – The annual average price of gasoline in the Gaspé Peninsula was among the highest in Quebec for three of the last five years.

This is what emerged in the notice on the price differences and marketing margins between the Quebec City region and the other regions of Quebec, released on October 25 by the Energy Board.

Upon consulting the document, it is learned that, with the exception of the Northern Quebec region, the Gaspé Peninsula posted the highest annual average price in 2020, 2021 and 2022.

The Energy Board established the price per litre at $1.0871 in 2020, $1.3763 in 2021, and $1.8196 in 2022.

Furthermore, prices in 2018 ($1.3124) and 2019 ($1.2569) placed the region in fourth place in the province, just a few tenths of a cent from first place.

The region drops in the Energy Board’s 2023 ranking because the Bay of Chaleur area lowers the average due to much lower prices compared to the rest of the Gaspé Peninsula.

Another finding in this Energy Board notice is the estimated retail margin of Gaspesian retailers has increased much faster than the Quebec average.

In 2018, the average Gaspesian margin was 9.08 cents, compared to 6.35 cents for Quebec, representing a difference of 2.73 cents more in the region.

In 2023, the Gaspesian average is 13.80 cents so far, compared to 9.83 cents in Quebec, a difference of 3.97 cents.

The increase in the gap between 2018 and 2023 was determined to be 4.73 cents by the Energy Board, while this increase was only 3.48 cents in Quebec.

The net margin, that is, the retailer’s profit once operating costs determined by the Energy Board are eliminated, is 8.30 cents this year, compared to a provincial average of 5.26 cents.

This means that Gaspesian retailers, on average, make a profit of 3.04 cents higher than their counterparts.

The profit margin was 7.46 cents (5.68 cents in Quebec) in 2022, 5.76 cents (2.06 cents) in 2021, 6.91 cents (2.65 cents) in 2020, 4.58 cents (1.38 cents) in 2019 and 5.58 cents (2.85 cents) in 2018.

One factor that could explain the larger margins in the region is the lower competition.

The region has only eight distributors, the lowest number in the province.

The number of franchises is only 11 – tied with Northern Quebec, also the smallest proportion in the province.

The day after the report was published, retailers in the Gaspé area had a retail margin of 18.7 cents, those in Rocher-Percé 17.5 cents, and those in the Bay of Chaleur area had 13.8 cents.

Gasoline was selling for $1.75 in Gaspé and Rocher-Percé and an average of $1.69 in the Bay of Chaleur area.

Some gas stations in the New Richmond, Bonaventure, and Paspebiac areas even advertised a price of $1.66.

CAA-Quebec estimated the regional average price at $1.70.

In light of these findings in Quebec City, the Minister of Energy, Pierre Fitzgibbon called on the five main retailers in the region to justify their profit margins.

He also asked the Competition Bureau to open an investigation.

In the Gaspé Peninsula, CAQ elected officials took the same step in July and reiterated their request in September.

The Competition Bureau responded that elected officials needed to demonstrate collusion in the region.

They did not accept this response and were considering approaching the office again.

Minister Fitzgibbon does not seem eager to intervene by setting a cap on retailer margins.