Canadian Independent Petroleum Marketers Association

May 19, 2006 14:34 ET

CIPMA Calls on the McGuinty Government to Adopt Gasoline Price Regulation in Ontario

TORONTO, ONTARIO--(CCNMatthews - May 19, 2006) - Yesterday, Ipsos-Reid released a poll confirming that most motorists feel that gasoline pricing in Ontario is unfair and that governments should step in to regulate.

70% of Ontario respondents said that, "...gasoline prices should be directly regulated by the government to protect consumers from unfair pricing."

Jane Savage, President of the Canadian Independent Petroleum Marketers Association, says that Ontario consumers are justifiably frustrated:

"Price regulation is not about shielding Ontarians from world prices. It is about giving consumers predictability and fairness, something sorely lacking in Ontario's gasoline markets today."

All provinces in Eastern Canada except Ontario have regulated gasoline prices.

"It is important that Ontario's government recognize the advantages of gasoline price regulation."

CIPMA recommends a proven gasoline price regulation model similar to that adopted by PEI and Nova Scotia. According to Savage, this model

- Limits the number of gasoline price changes, reducing price volatility and "gas station bingo".

- Reduces the price differences between northern and southern Ontario to defensible, freight related costs.

- Continues to encourage conservation by using a world gasoline benchmark for pricing.

- Imitates the world gasoline market, but eliminates opportunistic profit taking by oil companies.

- Will restore consumer confidence in our gasoline markets

- Allows retailers to price their gasoline within a prescribed range, encouraging competition and efficiency amongst retailers.

- Does not lead to higher prices.

CIPMA is a not-for profit trade association representing the interests of non-refiner fuel marketers in Canada. CIPMA members account for approximately 20% of Ontario's retail gasoline sales. CIPMA supports the use of renewable fuels and supports gasoline price regulation that prevents unfair pricing practices.

Contact Information

  • Canadian Independent Petroleum Marketers Association (CIPMA)
    Jane Savage
    President and CEO
    (416) 691-9292 or Cell: (416) 509-8240
    jsavage@cipma.org
    www.cipma.org