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Quebec gas companies charged with price fixing
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CTV.ca News Staff
Date: Thu. Jun. 12 2008 8:22 PM ET
Gasoline retailers in four Quebec regions have been accused of price fixing, the federal Competition Bureau announced Thursday.
The alleged scheme involved 13 people and 11 companies in the Quebec regions of Sherbrooke, Magog, Victoriaville and Thetford Mines, Commissioner of Competition Sheridan Scott told reporters at a Montreal news conference.
Three companies -- Les Pétroles Therrien (operating under the name Petro-T), Distributions Pétrolières Therrien and Ultramar -- pleaded guilty Thursday in Quebec Superior Court in Victoriaville. The court handed out fines totalling more than $2 million to the three companies.
Former Ultramar employee Jacques Ouellet also pleaded guilty and was fined $50,000.
The investigation began two years ago.
"Gas retailers phoned each other to agree on the price they would charge customers for gasoline," Scott said. "An overwhelming majority of retailers (in those regions) participated."
Ultramar is the only major oil company implicated in the investigation. Many of the others were local franchisees operating under the Esso and Shell brands.
Scott said there is no evidence Ultramar's head office was directly involved in the scheme, which cost the company a $1.85-million fine.
"This is obviously a regrettable situation that we deplore,'' Christian Houle, an Ultramar vice-president, said in a statement posted on the company's website. "We believe these employees did not mean to cause harm but acted out of carelessness without taking into consideration established rules and consequences of their actions."
Houle said Ultramar chose to plead guilty to avoid a long and costly trial.
The company's fine was one of the largest the Competition Bureau has ever handed out for price fixing, Scott said.
Scott said price fixing remains illegal and that her organization plans to take action whenever possible to expose the practice.
"Price fixing is a fraud against consumers," she said. "Price fixing deprives Canadians of the benefit of competition."
In some regions of Quebec, gas is selling for as much as $1.51 per litre.
Wiretaps, searches and testimony were used as evidence in the case.
An investigation into potential price-fixing in the retail gasoline market continues in other markets in Canada. According to Liberal MP Dan McTeague, a vigilant observer of gas prices, smaller cities are more likely to see this sort of conspiracy because it's easier to coordinate a small group of retailers.
"In smaller markets, you can imagine 15 or 16 stations might have 60 per cent of the market," he told CTV Newsnet on Thursday.
With files from The Canadian Press
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I applaud the budget, even though Health Care and education may stay unscathed. Sadly this cannot last and I worry to later this year where cuts will become enviable. If anything, this provides the Wildrose Alliance plenty of ammo when an election is called.


Comments are now closed for this story
gord
said
Mike Webster
said
Keith
said
Many Canadians have long been convinced this is a widespread practice.
Ken
said
John
said
Jason Daniel Baker
said
I bet they'll say they didn't even know what they were doing was illegal.
Wake Up People
said
Jim
Fredh in Montreal
said
Jim
said
RRor
said
Ken
said
WK
said
$3000 - $6000 a day I'm sure you all can do the rest of the math...The point is WE ARE ALL BEING GOUGED
Ian.
said
If you want to make it really hurt for these companies, then make it illegal for them to raise the price of gasoline for a set duration. Make -them- feel the pinch of the rising cost of oil .... these guys haven't EVER had a money-losing year in their entire existence.
Make them hurt. Just once.
Don
said
Beaj
said
Not a surprise to the consumer we believe this happens everywhere across our country....:)
Max
said
James
said
GW
said
Marc
said
syl
said
Roony
said
Everyone who owns a vehicle knows the prices go up over night at all the gas stations everywhere. They caught them in Quebec, now do the same in the rest of the provinces....
Kevin Seymour
said
truck while we are paying 1.50 plus at the pumps. Who can justify this??
bob
said
10000 * .06 =600$ not 6000$.
I own a gas station and my margin is only .03$ per liter.
I sell about 14000L per day so about 400$ profit. after paying employees and electricity from pumps ect ect. I have nothing left. Groceries are my only profits with a 30% mark up.
cheers
Raoul
said
Thought he/she was making an insightful comment by saying "I did some homework" and somehow deduced that 10000 litres per day multiplied by 6 cents/litre equals $6000. As GW pointed out, should have checked with a calculator before you posted.
GJ
said
I wouldn't say ALL the stations/retailers are involved in this practice but the reality is quite a few are and not just in Quebec either. The federal and provincial governments won't do squat about the price of fuel because the higher it goes the more tax revenue they make. They're smiling all the way to the piggy bank and we all know it.
Max
said
Let me first wipe my tear... I appreciate you sharing with us your plight. Goodness; I might not sleep tonight worrying about you.
It was interesting to note that, as a gas station owner/operator, you had absolutely nothing to say about the article and price-fixing.
Vince M
said
One might be cash only and the other credit card. One is self serve and the other isn't. But the important thing was they priced for what they offered.
Why do we not have that degree of differentiated pricing here?
Charles
said
Jim Flaherty
said
dale worsfold
said
you don't do exactly as the oil company demands or charge what they tell you to, they put you out of business and find another sucker.
having a background in the retail service station industry, i know this to be true. the oil companies could care less as long as they make their windfall profits
Jim Flaherty
said
And what about diesel? Why does it need to be 1.45+ per litre?
Brad
said
connie
said
Les J
said
/sarcasm off
Kevin: Your friend that says he is getting diesel for 0.44 is full of bull excrement. At $130/bbl, the cost of diesel, just from the crude portion, is about 0.85. Add up to 0.4 for taxes, and 0.2 to 0.3 for refining costs, and we are at 1.4 to 1.5, just for costs.
And y'all should quit whining. At least quit until a carbon tax is introduced. Then we can see European prices; at 2 to 3 dollars/liter.
Lynn's broke now
said
Theorist
said
When you work at a station, you receive a call that it's time to change the price. You then call into a national call center and an automated system quotes you the new price.
Obviously not the case in this situation, however that is how it works. Conspiracies only run so deep...
Peter
said
Yes, they may have caught some of the culprits and yes the gas companies are taking us to the cleaners, but are our Gov'ts reducing TAXES on gasoline? NO!
dusty b.
said
DD
said
James
said
Jasper
said
The competion bureau should look for price fixing in other major cities. It shouldn't be too hard. Just look for the highest prices. I can understand higher prices in remote locations where transportation costs are higher; but here in Sask we have 2 refineries and 3 more in Edmonton. Transportion costs to the oil companies shouldn't be an issue. They produce the fuel.
Chris C.
said
Former Pump Jockey
said