Ontario is seeking a review of the province’s retail transportation fuels market, including gasoline and diesel to provide more transparency for consumers about how prices are set.

There are a number of factors that contribute to the determination of retail gas prices, including crude oil costs, taxes, the refining/wholesale margin and the retail margin. Families and businesses have requested more information about how gasoline and diesel retail prices are set. In particular, northern communities have expressed concerns over variations in prices across regions and over time.

In response, Minister of Energy Glenn Thibeault has asked the Ontario Energy Board (OEB) to conduct a review and deliver a report to the government.

The review would focus on three main topics:

  • The extent and causes of retail gasoline/diesel price variations over time and between regions within Ontario
  • How Ontario compares with pricing and markets in other jurisdictions
  • The information available to consumers about pricing and price variations

Ensuring businesses and families have reliable information on fuel prices is part of our plan to create jobs, grow our economy and help people in their everyday lives.

QUICK FACTS

  • As part of its review, the OEB is expected to begin consultations in the coming months with the public and key stakeholders across the province.
  • In Fiscal 2015-16, gasoline taxes generated $2.46 billion in revenue and other fuel taxes generated an additional $751 million in revenue for Ontario.
  • Gasoline and diesel are vital transportation fuels used in Ontario. Overall, oil products account for approximately 40 per cent of Ontario’s energy use.
  • The Ministry of Energy currently monitors the supply and price of gasoline in Ontario (and in other jurisdictions) on an ongoing basis and makes this information publicly available through the quarterly Ontario Energy Report.

Overseeing competition in Ontario’s gasoline market is the responsibility of the federal Competition Bureau. The bureau is an independent federal agency that promotes compliance with the Competition Act, ensures competition in Ontario’s gasoline market and investigates anti-competitive practices, such as price fixing.

Filed under: Local News