In 2022, motorists in the Capitale-Nationale paid too much for gas!
As observed by CAA-Quebec, motorists in the Capitale-Nationale were disadvantaged at the pump compared to those in other administrative regions of the province due to high retail margins.
Indeed, the increase in the average retail margin in 2022 in the Capitale-Nationale, compared to 2018, was much higher (204.5%) than the one prevailing for Quebec regions as a whole (60%).
Average retail margin (excluding consumption taxes)
| Année | Capitale-Nationale | Province average |
|---|---|---|
| 2018 | 4.4 cents/litre | 6.5 cents/litre |
2019 | 2.3 cents/litre | 4.8 cents/litre |
| 2020 | 6.1 cents/litre | 5.9 cents/litre |
| 2021 | 8.3 cents/litre | 5.7 cents/litre |
| 2022 | 13.4 cents/litre | 10.4 cents/litre |
Variation 2022-2018 | 204.5% | 60% |
As a result, the region’s average retail margin over the past year is now approaching those in remote areas in this early part of 2023. The Capitale-Nationale region ranks 5th out of 17 behind Nord-du-Québec, Bas-Saint-Laurent, Gaspésie-Îles-de-la-Madeleine and Côte-Nord.
This constitutes an illogicality, since service stations located in large centres generally charge a lower retail margin than those located in smaller communities because their fuel volume is higher.
Furthermore, in the Capitale-Nationale, the industry is quicker to adjust the price at the pump upwards, when oil indicators are rising, than it is to adjust the same price downwards when oil indicators are falling. In fact, CAA-Quebec found that the retail margin reached more than 20 cents/litre on six occasions* in 2022 and ranged between 15 and 19 cents/litre on 54 occasions. Such margins can be described as very high.
Other inconsistencies at the pump
On three occasions in 2022, the price posted at the pump in the Capitale-Nationale was the second highest in the province after James Bay.
Capitale-Nationale is the only administrative region in the province where the price at the pump is the same across its territory**, whereas it is impossible for different gas stations to have the same operating costs.
On five occasions in 2022, prices posted at the pump were not adjusted for several days or even weeks, even though oil indicators were continually fluctuating.
CAA-Quebec has little explanation for this situation, except that service stations in the Capitale-Nationale region seem to be comfortably holding on to their market share and the high margins they charge to customers. By doing so, they show no desire to gain market share over their competitors.
What’s in store at the pump in 2023 for motorists in the Capitale-Nationale?
So far, the retail margin has exceeded 20 cents/litre on one occasion and has ranged between 15 and 19 cents/litre on seven occasions. CAA-Quebec is hoping for a return to a more consistent approach to pricing at the pump and a retail margin that is lower than the provincial average margin.
NOTICE: It is important to note that the above findings do not constitute evidence of collusion. Collusion is an illegal price-fixing agreement that can only be proven by very strong investigative evidence gathered by the Competition Bureau of Canada.
* Occasions are defined as the number of business days in which such margins were observed.
** With the exception of gas stations located on the grounds of a well-known large warehouse.