Competition Bureau
ToolsRelated topicsResourcesCompetition Bureau concludes examination into complaints about high gasoline pricesOTTAWA, March 31, 2005 – After a thorough examination, the Competition Bureau has found that low inventories of gasoline in North America and worldwide increases in the price of crude oil, the major cost component in the price of gasoline, led to the rapid rise in retail gasoline prices in the spring and summer of 2004. "We found no evidence to suggest a national conspiracy by gasoline companies to coordinate price increases," said Sheridan Scott, Commissioner of Competition. "Retail gasoline pricing behaviour in major centres across Canada during this period was consistent with independent pricing actions taken by businesses in response to normal market forces." The examination also found that before taxes, retail gasoline prices in Canada continued to be lower than prices in most industrialised countries and were slightly lower than prices in the United States in May 2004. As part of its review, the Bureau analysed information from industry experts and participants from all sectors of the petroleum industry. The Bureau also retained an expert economist to assist with the examination. The expert's report, The Effects of Recent Volatility in International Petroleum Markets on Canadian Wholesale and Retail Prices, is available on the Bureau's Web site. In its examination, the Bureau studied refiner margins, crude oil and retail price indexes and other industry data to determine if the rapid increase in the price of retail gasoline in the spring and summer of 2004 was likely due to anti-competitive conduct or to other factors. The Bureau's report, Gasoline Empirical Analysis, is also available on its Web site. Since 1990, the Competition Bureau has conducted five major investigations into allegations of collusion in the gasoline industry. It has consistently found no evidence to suggest that periodic price increases resulted from a conspiracy to limit competition in gasoline supply. After each increase prices fell to normal levels. However, the Bureau continues to investigate specific complaints about potential contraventions of the Competition Act and will not hesitate to take appropriate action where warranted. The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act. Backgrounder > Competition Bureau Concludes Examination into Complaints about High Gasoline Prices For media enquiries, please contact:Eric Glaude For general enquiries, please contact:Information Centre 
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Created: 2005-03-31 Updated: 2005-04-13 |
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