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Competition Bureau fires back...here's why our gas prices are high

"While high prices can cause hardship to Canadians, businesses are generally free to set their own prices at whatever level the market will bear."
gas pump 2016

Last week BayToday ran a story on a northern Ontario MP's fight against high gas prices and we gave a bit of a shot to the Competition Bureau.

See the story here: MP to take shot at gas prices

The folks there weren't that pleased, and they phoned to offer an explanation.

Fair enough.

Senior Communications Advisor Taylor Bildstein politely told us that the Bureau is required by law to conduct its work confidentially, including the handling of complaints.

"However, let me assure you that every complaint received by the Bureau is given appropriate consideration. Should the Bureau find evidence of behaviour that violates the Competition Act, it will take action, where appropriate," she explained.

So here is the Bureau's explanation for our gas prices, in case you want to complain yourself.

"High gasoline prices are of concern to all Canadians. However the fact that retailers may charge similar prices does not in itself constitute an offence under the Competition Act—there must be evidence that competitors have made an illegal agreement to set those prices. High or identical prices are not in and of themselves evidence of such an agreement.

"Gasoline prices can vary from place to place because of a number of factors that may affect prices in local markets. These factors include:

  • Differences in local supply and demand conditions, including the number, size and type of competitors in each market;
  • Differences in taxes;
  • Differences in marketing, distribution and transportation costs; and/or
  • The presence of one or more aggressive price competitors in a local market.

"While high prices can cause hardship to Canadians, businesses are generally free to set their own prices at whatever level the market will bear. Charging high prices is not illegal in itself; however, it is illegal if competitors have conspired to set those prices," wrote Bildstein.

As of this afternoon according to Gasbuddy, the cheapest gas in town is 91.9 at the Shell on Trout Lake Road, while the most expensive is the Shell on Lakeshore Drive at 93.3.

The Ontario average today is .86.

You can check local gas prices on BayToday. From our main page, go to the top right hand corner under "Shop Local" and choose North Bay Gas Prices.

You can find more information on enquiries and complaints at: http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/h_00019.html


Jeff Turl

About the Author: Jeff Turl

Jeff is a veteran of the news biz. He's spent a lengthy career in TV, radio, print and online, covering both news and sports. He enjoys free time riding motorcycles and spoiling grandchildren.
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