#Competition

Quebec to revisit gasoline prices in Gaspé

Nelson Sergerie, LJI Journalist

GASPÉ—While the price of a litre of regular gasoline has gradually declined over the summer throughout the Gaspé Peninsula and elsewhere in Quebec, the Gaspé region has bucked the trend, with gasoline selling for $1.57 per litre for several weeks.

Meanwhile, gasoline sold for $1.49 in the Chandler region, just over 100 kilometres from Gaspé, on August 13. A litre was selling for around $1.50 in Baie-des-Chaleurs, $1.54 in Haute-Gaspésie and $1.51 in Matane and Rimouski.

This observation prompted the Member of the National Assembly (MNA) for Gaspé, Stéphane Sainte-Croix to question the profit margins charged by gas retailers in the region. According to data from the Régie de l’énergie, the profit margin was 19.3 cents on August 13 in Gaspé, compared to 13 cents in Baie-des-Chaleurs and 11.5 cents in Rocher-Percé.

The Coalition Avenir Québec (CAQ) government is looking into this issue. Stéphane Sainte-Croix is already discussing it with the Minister of Energy.

“We have already begun discussions on this issue in light of what we are seeing this summer. As it is well documented in the region, I am using this to make my case. Yes, we will take up the fight again in the future,” says the MNA.

When asked about the nearly 10-cent difference between Gaspé and Chandler, Mr. Sainte-Croix points out that the price floor was abolished to stimulate competition.

“Clearly, there is still a long way to go here,” says Mr. Sainte-Croix.

“In terms of profit margins, there may be an explanation behind this phenomenon that largely accounts for the difference between Gaspé and other areas of the Gaspé Peninsula,” he comments in a brief analysis.

Back in July, the mayor of Gaspé was unable to explain the price difference between Gaspé and Chandler.

“It’s a sign that there is a lack of competition,” said Daniel Côté, calling once again on the Competition Bureau to do its job.

Last September, the Competition Bureau concluded that there was no collusion in the Gaspé Peninsula to fix gasoline prices.

The bureau stated at the time that “combating anti-competitive behaviour in the gasoline sector is a priority for the Bureau. It is for this reason that our investigators visited several regions of Quebec to better understand how gasoline prices are determined. These visits took place in eastern Quebec, including the Gaspé Peninsula, on July 18, 2024.”

“To date, the information obtained has not allowed us to demonstrate the presence of anti-competitive activities in the retail gasoline sector,” the office noted, recalling that its role is to investigate price fixing and other anti-competitive behaviour.

As an enforcement agency, the office does not have the authority to regulate gasoline prices. That task falls to the Quebec government, the federal agency added.

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Gasoline: A difference that the mayor of Gaspé cannot explain

Nelson Sergerie, LJI Journalist

GASPÉ – The mayor of Gaspé says he cannot explain the eight-cent-per-litre difference in gasoline prices between his town and nearby Chandler following a drop in prices at the pump on July 17 in the area between Chandler and Cap-d’Espoir.

In that region, a litre of regular gasoline was selling for $1.47, while in Gaspé, no change had been observed, with the price still at $1.57 as of July 23.

“It’s inexplicable to have an eight-cent difference between Gaspé and Chandler, and it’s just as inexplicable that everyone changed their prices at practically the same time,” said the mayor of Gaspé Daniel Côté.

The price drop spread quickly through the Rocher-Percé MRC on July 17.

According to data from the Régie de l’énergie, as of July 21, retailers in that MRC were earning an average profit margin of 11.3 cents per litre—similar to last year’s average.

In contrast, retailers in Gaspé were charging a 19-cent margin, compared to an average of around 12 cents last year.

“This is a sign that there is a lack of competition. That’s why we’ve been calling on the Competition Bureau for years. We are asking them once again to do their job and demonstrate that there is a lack of competition, which is causing all sorts of abnormal, even absurd things to happen, and it is ordinary people who are paying the price,” commented the mayor.

Last September, the Competition Bureau concluded that there was no collusion in the Gaspé Peninsula to fix gasoline prices.

At the time, the bureau stated that “combating anti-competitive behaviour in the gasoline sector is a priority for the Bureau. It is for this reason that our investigators visited several regions of Quebec to better understand how gasoline prices are determined. These visits took place in eastern Quebec, including the Gaspé Peninsula, on July 18, 2024.”

“To date, the information obtained has not allowed us to demonstrate the presence of anti-competitive activities in the retail gasoline sector,” the Bureau added, reiterating that its role is to investigate price-fixing and other anti-competitive practices.

As an enforcement agency, the Bureau does not have the authority to regulate gasoline prices. This falls under provincial jurisdiction, the federal agency emphasized.

Since the Quebec government abolished the minimum price floor, no price adjustment has been observed in Gaspé, which continues to rank among the most expensive sectors in the province for gasoline.

Only the regions of Northern Quebec and the Magdalen Islands have higher prices than Gaspé.
Some gas stations in Gaspé have adopted similar lower prices, but the trend is far from widespread.

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