Competition Bureau Charges Quebec Companies With Gas Price Fixing

The Canadian federal Competition Bureau Criminal stated that charges have been laid against 13 people and 11 companies accused of fixing the price of gas in Quebec.

A total of 13 people and 11 companies have been accused of fixing the price of gas in Quebec. The accused had operations in Victoriaville, Thetford Mines, Magog and Sherbrooke. The federal Competition Bureau said Thursday that three companies and one person pleaded guilty in Quebec Superior Court in Victoriaville on Thursday to related charges. Ultramar Ltd is one pf the 11 companies that face fines of $2 million in total. Sheridan Scott is the commissioner of the Competition Bureau and made the annoucnment at a news conference in Montreal Thursday. "Today's announcement sends a clear message that the Competition Bureau will take action to stop price fixers whenever we have evidence that they have broken the law," bureau commissioner Scott said. "Price-fixing is a fraud against consumers. It deprives Canadians of the benefits of a competitive market, including a lower price and a greater choice." The allegations state that the gas retailers who are individual operators who ran their stations under the banners of Shell, Esso, Petro-Canada and Irving oil called each other to agree on prices. Ultramar was fined $1.85 million, while Les Pétroles Therrien Inc., operating under the Petro-T banner, and Distributions Petrolières Therrien were fined a combined $179,000. One Ultramar employee, Jacques Ouellet, was fined $50,000. Apparently, an "overwhelming majority" of businesses in the markets involved are accused of participating in the alleged scheme. It’s difficult to estimate how much the alleged price fixing cost consumers.. An “extensive investigation” by the bureau that was conducted from 2004 to 2007 was responsible for the charges being laid. The investigation involved the use of wiretaps, searches and informants was The probe continues, Scott said, with investigations being carried out in other parts of Canada. Ultramar will not challenge the charges. "This is obviously a regrettable situation that we deplore," said Ultramar motorist sales network vice-president Christian Houle. The charges “give a clear signal to those who will be tempted to [create] cartels not to do it,” said Charles Tanguay, a spokesman for l’Union des Consommateurs, Quebec’s consumer watchdog. “We see that there are severe penalties, [and] there might be class-action lawsuits,” possibly launched in upcoming days, he said. Drivers around Canada have been outraged this spring as gas prices climbed to new record highs, crossing the $1.50 a litre mark in major Quebec urban centres last week.