Government calls for gas price investigation

News Release
Ont. Gov’t.

The Competition Bureau needs to investigate the refining, wholesaling and retailing of gasoline to ensure consumers in Ontario and across Canada are paying a fair price, said Minister of Government Services Gerry Phillips today.
In a letter to Sheridan Scott, the Commissioner of the Competition Bureau of Canada, Phillips said it’s time for the bureau “to ensure that Ontarians are paying a fair price for fuel across the province. We need to be sure that consumers are being protected from an excess of market power that is concentrated in the hands of a small number of energy companies.”
Even though Hurricane Katrina had an impact on the price of gasoline, the tragedy on the Gulf coast and speculation about Hurricane Rita do not explain why prices in some areas spiked to nearly $2.00 per litre when the market trend has been going in the opposite direction. It also does not explain why prices change faster and vary more between regions in Ontario than in neighbouring U.S. states.
“I’m becoming very concerned that these prices do not reflect the market as a whole and give consumers the false impression that there is a shortage of gasoline,” said Phillips. “I am urging the Competition Bureau to investigate these prices and report their findings promptly.”