Gas prices: Quebec plans to remove floor pricing

The Quebec government says it plans to cut floor prices on gas in the province in order to “encourage competition and, ultimately, ensure that consumers pay the best possible price at the pump.”

“In Quebec, we want to protect our economy and our consumers, and that includes making markets more competitive and ensuring real transparency in gasoline prices,” said Christine Fréchette, Quebec Minister of the Economy, Innovation and Energy.

According to the ministry, removing the floor price on gasoline, the minimum price gas stations are allowed to charge at the pump, and other fuels will “protect the interests of consumers in all regions of Quebec by promoting a more competitive gasoline pricing market.”

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The ministry laments that having a base price limits competition between retailers and could lead to higher prices in the long term.

“The floor price, introduced in the 1990s, is no longer appropriate,” adds Samuel Poulin, parliamentary assistant to the economy, innovation and energy minister. “The federal Competition Bureau will also have additional tools to monitor prices in each region.”

As such, the government says it plans to propose amendments to Bill 69, An Act to ensure the responsible governance of energy resources and to amend various legislative provisions.

Any changes are subject to the bill’s adoption.

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This isn’t the first time the Coalition Avenir Québec (CAQ) has proposed to remove floor pricing at the pump.

In May 2024, former Quebec Economy Minister Pierre Fitzgibbon stated the province would get rid of its floor pricing.

The Quebec government notes that under the new regulations, retailers will be obliged to transmit any changes in gasoline and diesel prices to the Régie de l’énergie in real time.

The Régie, in turn, will be asked to make the information available online, as well as produce a publicly accessible report on the evolution of retail gasoline and diesel fuel markets in Quebec.

According to CAA, the average price of gas in Canada currently stands at 130.3/L.

In Quebec, it’s 148.0/L compared to Ontario at 127.6/L.

In Montreal the average price at the pump is 157.0/L, with a realistic price of 160.3/L.