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Regulating gasoline prices

Why can't the federal government regulate gasoline prices?

In Canada, only provinces and territories have the authority to regulate products such as gasoline and heating oil prices. The Government of Canada has no jurisdiction over regulating prices except in national emergencies. The federal government's goal is to promote and maintain fair competition by strengthening existing legislation such as the Competition Act and to inform Canadians with the best possible information.

The federal government also encourages fuel efficiency and the increased use of alternative transportation fuels, through consumer information programs, fuel efficiency agreements with the automotive industry and research, development and demonstration of new vehicle technologies.

Go to Related Links to find more information about energy efficiency programs offered by Natural Resource Canada’s Office of Energy Efficiency.

Should our gasoline prices be regulated?

Most evidence suggests that regulation, while keeping prices more stable, ultimately leads to higher prices for consumers. Three provinces, Newfoundland and Labrador, Prince Edward Island and Quebec, currently regulate gasoline prices.

Consumers in those provinces see fewer changes in prices but they are not paying less for gasoline on average than other Canadians.

Need more information? See Why Canada Doesn’t Regulate Gasoline Prices.