Regina MP calling for an investigation into gas prices

Erin Weir isn't convinced that the carbon tax that took effect April 1 is entirely to blame for the rise of gas prices.

The independent MP for the Regina-Lewvan riding is asking Competition Bureau Canada to investigate possible price fixing among retail gas stations.

Gas prices were as high as $1.29 per litre at some stores in Regina while it was as low as $1.09 in other places. Weir said in a Friday statement that the impact of the carbon tax was projected to add about 4.4 cents to the price at the pumps.

"So, if only a fraction of that could be attributed to the carbon tax [then] clearly there are many other factors at play," Weir said on Tuesday.

The federal carbon tax was implemented after the provincial government created a plan to reduce emissions that did not include a price on carbon, leading to it being rejected by the federal government.

The Bureau said in a statement it was aware of Weir's comment and cannot regulate gas prices.

"It's important to keep in mind that high or identical prices in and of themselves are not evidence of illegal activity," Marcus Callaghan, senior communications advisor for the bureau, said.

"The Bureau must secure hard evidence that demonstrates an illegal agreement between competitors."

Charging the same price for a litre of fuel is not illegal unless competing gas stations agree on a certain price.

The statement said cracking down on anti-competitive practices in retail gas is a priority. Anyone who believes their employer is engaging in price fixing can access the bureau's whistleblowing initiative. 

No conspiracy, says petroleum analyst

Dan McTeague, a senior petroleum analyst with GasBuddy and former Liberal MP, said there's nothing conspiratorial going on.

He said the range of prices on GasBuddy suggests it's unlikely there's price fixing and that prices for gasoline and diesel tend to go up this time of year, so the increase we've been seeing may have little to do with the new carbon tax.

"Having been a member of Parliament myself for 18 years, I understand the frustration but I think the member would be better to focus on where the problem is as opposed to simply finding a simple, much-tried reaction which is called the Competition Bureau," McTeague said.

He said Canadians are "price takers," paying international prices for all of our commodities, and that the problem isn't price fixing, rather it's a lack of competition.

"There is only one refinery in Regina. There's only three in Edmonton. So we only have really four or five players across the country. And they share product with each other. So when one makes a move to reflect what's happening immediately in the markets the South ... you will find that the gas price tends to evolve from that with almost a linear fashion."

'Hysteria' about the carbon tax

Weir acknowledged that an increase in the price of oil and gas would contribute to a higher price at the pumps, but suggested that's not entirely responsible for the increase either.

He also mused that conservative politicians have drummed up "hysteria" about the carbon tax when politicians across the country flocked to the pumps to fuel up before the tax kicked in.

Weir also issued a challenge to fellow Regina MP and federal Conservative Party of Canada leader Andrew Scheer.

"If they're truly concerned about the impact of gas prices on consumers, I would invite them to join me in calling for a broader competition inquiry," Weir said.

The average cost of fuel in Regina has jumped about 19 cents since last month, according to the GasBuddy fuel insights page. 

"People are concerned about that and a lot of people are recognizing that the increase in gas prices is way more than the carbon tax," Weir said.