competition bureau

Nelson Sergerie, LJI Journalist

Bureau believes that there is no collusion in the Gaspé Peninsula regarding gas price-fixing. 

The federal agency is responding to a September 11 online article by CHNC, which reported that Gaspé won the gold medal for highest gasoline prices in Quebec. The topic was also covered in the September 18 issue of The Gaspé Spec. 

The mayor of Gaspé, Daniel Côté, stated that he “would like us to have a little attention from the Competition Bureau of Canada. It’s their job to clean up and investigate this. It’s not true that you can investigate from an office in Ottawa.” 

In an email, the Competition Bureau states that “fighting anticompetitive behaviour in the gasoline sector is a priority for the Bureau. That is why our investigators have visited several regions of Quebec to better understand how gasoline prices are determined. These visits took place in Eastern Quebec, including the Gaspésie, on July 18.” 

“To date, the information obtained has not allowed us to demonstrate the presence of anticompetitive activities in the retail gasoline sector,” continues the email from the organization, which noted that its role is to investigate price-fixing and other anticompetitive behaviour. 

As an enforcement agency, the Bureau does not have the authority to regulate gasoline prices. This responsibility lies with the provincial government, which abolished the floor price, but the resigning Minister of Energy had always refused to impose a ceiling price. 

“We continue to monitor the retail gasoline market closely and we will take action against illegal practices if we find credible evidence that an offence has been committed under the Competition Act,” the office concludes. 

The mayor of Gaspé doesn’t think the Bureau conducted much of an in-depth investigation. “We have to admit that they are not doing their job beyond giving us vague answers, which we have been receiving for the past four or five years. Besides that, I do not see a real investigation process taking place, when they have already been able to conduct in-depth investigations in certain regions of Quebec, to dismantle cartels that existed elsewhere. As long as there is no in-depth work that is done, I will not be satisfied with these answers,” replies Daniel Côté. 

This email was sent at a time when the oil companies profit margins were approaching unreasonable levels on September 11 in the Gaspé Peninsula. According to the Energy Regulation Board, margins reached 31.2 cents in Gaspé and 29.8 cents in Chandler, while the average over the last year was 16.5 cents in Gaspé and 15 cents in Chandler. The average acquisition cost for retailers in the Gaspé Peninsula was $1.35, according to the board.