Saturday, February 5, 2011

Gasoline Prices: Quebec will go to the Board

The Minister of Natural Resources, Nathalie Normandeau, said she was "shocked by the very large fluctuations" of gasoline prices in Quebec and will request a new report on the matter to the Régie. Mrs. Normandeau was reacting to a study by the CAA-Quebec revealing difficult to explain disparities between gasoline prices in Montreal and Quebec and those in the region.
During a press conference in Montreal, Minister Normandeau said a study commissioned to the Board of Energy had concluded that the market was behaving normally, but the investigation of the CAA-Quebec would lead to commission a new study to the Board on this issue described as "complex" by Mrs. Normandeau.
According to CAA-Quebec, retailers and independent Montreal and Quebec keep retail margins are higher compared to many less populous regions of Quebec, so that motorists could be entitled to expect more fierce competition, typical of major markets.
"Some areas do not respond to market supply and demand," says Cedric Essiminy, spokesman for the CAA-Quebec. How is it that in Montreal, which is the biggest market in the province with over 860 stations, the retail margin is higher than in smaller markets? "

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