Competition Bureau Concludes Price Increases of July 1999 Due to Market Forces

OTTAWA, February 4, 2000 - The Competition Bureau has completed its examination of the increase in retail gasoline prices that occurred in July of 1999. The Bureau has concluded that the price increases were due to increases in the price of crude oil and were not the result of anti-competitive behaviour.

The Bureau began this examination in July 1999 after receiving a large number of complaints from consumers about increasing gasoline prices. The examination involved interviewing industry participants and conducting an extensive review of market data and company pricing information.

The Competition Bureau's job is to examine complaints to determine whether there has been an offence under the Competition Act. In this examination, the Bureau considered whether there had been a criminal offence under the conspiracy or price maintenance provisions of the Act, or if an issue was raised under the civil abuse of dominance provisions.

The evidence indicates that the gasoline companies made independent decisions in July 1999 to increase their retail gasoline prices. There is no evidence to suggest that gasoline companies communicated or cooperated with one another when implementing price increases.

There are therefore no grounds to commence an inquiry into the retail gasoline price increases of July 1999 and the examination is closed.

For a full explanation of the findings, please see the Report on Gasoline Examination.

The Competition Bureau is an independent law enforcement agency whose mandate is to maintain and encourage fair competition in Canada. The constitutional power to regulate retail gasoline prices rests with the provincial governments.

For further information, please contact:

Cynthia Grant
(819) 994-0349

or

Julie Hébert
(819) 953-4257