Price gouging at the pumps a hot topic

Alberta Premier Jason Kenney is asking the Competition Bureau of Canada to investigate price gouging at the pumps. The Alberta government eliminated the 13 cent per litre provincial fuel tax back in April but Albertans have not seen a lot of savings. Dan McTeague, the president of Canadians for Affordable Energy, is happy the Premier is deciding to do something about the price fixing but he says gas retailers have been playing the alleged collusion game for quite some time.

“Reality is that gas stations have traditionally taken anywhere from $0.08-0.12 cents a litre. Now, of course, they’re looking at margins on a day like today where they’re charging $1.79, but it’s costing them $1.37 to buy their fuel. That’s extraordinary. That’s a $0.42 retail margin. Strip away the GST it becomes $0.39. Strip away that traditional $0.10-0.12 cents, and now you’re looking at $0.27 cents a litre net that they’re adding to the price of gasoline, or they’re not passing on.”

Premier Kenney has also reached out to Service Alberta to see if there is anything that can be done under the Alberta Consumer Protection Act to help motorists save more money.