Competition Bureau to examine gasoline prices

Canadian Press

(Ottawa)  The federal Competition Bureau has undertaken an examination of
the oil sector in order to determine if recent gas price hikes are legal.
Gas prices went up all over Canada last week with prices topping more than
a dollar a litre at some locations.

The federal Competition Bureau, which falls under the responsibility of
Industry Minister Lucienne Robillard, said it is looking at the problem
after numerous complaints from consumers and retailers. On May 4, 2004 the
Bureau commenced an examination of the Canadian petroleum market to
determine whether recent increases in retail gasoline prices may have
resulted from a breach of the Competition Act, the organization's website
says.

The examination focuses on whether the price increases result from a
conspiracy among oil companies to fix or coordinate prices or other
anti-competitive practices by one or more dominant firms in the industry,
or whether there could be some other explanation such as worldwide and/or
North American supply and demand changes.

The organization has examined gas prices before and has found each time
that price hikes have not been a result of collusion between oil companies.
Last fall, a parliamentary committee recommended the creation of an office
to monitor the oil sector in order to reduce sudden price changes, but the
government did not follow up on the recommendation.

Last week, the oil lobby and the Canadian Petroleum Products Institute
asked Ottawa to implement the recommendation. Such an office would put an
end to the confusion that exists in consumers and the misconceptions
concerning the price of gas, Alain Perez, president of the oil lobby, said.


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