Kenney to ask competition bureau to investigate potential gas price fixing in Alberta

As gas prices rise in Alberta, the premier says he's going to ask Canada's competition bureau to investigate potential price fixing in the province.

In a Friday afternoon statement, Jason Kenney said the 13-cent per litre provincial fuel tax introduced in April helped Alberta have the lowest prices in Canada.

“That’s because gasoline retailers chose to pass these savings along to their customers. However, over the last 10 days, the gas price advantage Albertans have enjoyed relative to other provinces has disappeared and it now appears Albertans are no longer benefiting from the tax cut," Kenney wrote.

Kenney says he met with the Canadian Fuels Association Friday afternoon to share Albertans' frustrations, and that he would ask the Competition Bureau of Canada to investigate potential price fixing between competitors — an illegal practice under the Competition Act.

“With Alberta no longer collecting fuel taxes at the pump, Albertans deserve to know why they are suddenly paying as much for gasoline as motorists in Toronto when as recently as two weeks ago they were paying far less," the premier said.

Gas prices have dropped at much as 10 cents across Canada in recent days. Alberta's average sits at 179.1/L, according to CAA.

Ontario currently has the lowest price at 175.8/L and B.C. has the highest at 201.3/L.

'A FLEECING'

Before Kenney's statement, an expert CTV News spoke with said retailers needed to explain why gas prices were so high in Alberta.

"There's some explaining to do because by my calculations, and I've been doing this for a very, very long time, over 30 years, gas prices should be down at least 15 cents a litre in our region. One would think $1.55, $1.58 would be a lot more normal than what we're seeing at $1.72 to $1.79," said Dan McTeague of gaswizard.ca and the president of Canadian for Affordable Energy.

According to McTeague, companies are "very reluctant" to pass on a "massive decrease" in their own cost of buying fuel.

"Which means that gas stations are doing extraordinarily well if you further consider that tomorrow, wholesale prices for gasoline for most gas stations drop five cents a litre. They'll be picking up net as much as 35 cents a litre here in Edmonton. Never has being a gas station been more profitable than it is today, right across the province, and in fact, across much of Western Canada," McTeague said.

"Thirty-three cents as a retail margin is beyond exceptional. It's really pressing the limits of what many people consider justifiably a fleecing."

McTeague said he would like to see a 15 cent/L drop and competition restored.

With files from CTV News Edmonton's Chelan Skulski