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Minimum price on gasoline hurts consumers says Taxpayers Federation

Author: Renaud Brossard 2021/05/20
  • CTF published its 23rd annual gas tax report this morning.

MONTRÉAL, QC – The Canadian Taxpayers Federation is using its 23rd annual Gax Tax Honesty Day to condemn Quebec’s minimum price on gasoline.

“Thanks to the bureaucrats calculating Quebec’s minimum price on gasoline, gas station owners can sue their competition to hike its prices,” said CTF Quebec Director Renaud Brossard. “The government shouldn’t help oil companies further gouge Quebecers.”

Every week, Quebec’s Régie de l’énergie calculates what it calls the “estimated minimum price,” which establishes a legal minimum price for the sale of petroleum products in every region and sub region in the province. If gas station owners sell gasoline below the estimated minimum price, they face the risk of getting a formal notice from their competitors for unfair business practices.

In 2020, the Régie de l’énergie was made aware of 1,454 such instances where formal notices were handed out for selling gas that was deemed too affordable by the competition.

“There’s not a lot of Quebecers wishing they could give oil companies a bit more money when going for a fill-up,” said Brossard. “This policy protecting corporations at the expense of consumers has to end.”

According to the CTF’s Gas Tax Honesty Day report, Montreal pays the highest gas taxes in the country, with 42 per cent of the total price going into government coffers. The rest of the province comes in fourth in the ranking, but second amongst provincial governments, with 39 per cent of the price of gasoline being taxes.

“High gas taxes and gasoline prices do nothing to help families struggling to afford their everyday expenses,” said Brossard. “Adding a minimum price of gas on top of it, which protects corporate profits at consumers’ expense, just adds insult to injury.”

The full report is available by clicking here: http://www.taxpayer.com/media/CTF%20-%20GTHD%202021%20Report%20-V5%20-%20May%2018,%202021.pdf