However, gasoline prices increased this spring due partly to the decrease in available supply of product caused by the rationalization of refineries in Western Canada, and the reduction in the number of gasoline service stations. This increase was widely reported in the media and resulted in complaints to the Bureau alleging price fixing or price gouging. Within 48 hours prices began to drop in the Ottawa region and these lower prices have been maintained. Observations of this kind of price volatility in a market are typical and consistent with a hypothesis of failed attempts to raise prices in the face of active competition. In the Director's view, the provisions in the legislation are adequate to deal with anti-competitive behaviour in relation to gasoline pricing and amendments to the Competition Act are not required at this time to deal with these issues.
Consumers have an important role to play in addressing retail gasoline pricing.
Those concerned about high gasoline prices should shop around and patronize gas stations that offer lower prices. This will reward the more aggressive retailer and put pressure on those who have higher prices to bring their prices down or risk losing business. Where consumers are concerned about the fairness of prices, they should demand an explanation from their gasoline supplier and seek a justification for the level of prices. Petroleum product suppliers also have an important role to play in order to ensure a competitive and transparent marketplace. If suppliers are pressured to change their prices by a competitor or another supplier, they should inform the Bureau.