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The MP for Regina-Lewvan suspects something fishy about how gas prices spiked in March and is suggesting that the Competition Bureau investigate whether there was anti-competitive behaviour involved.
Erin Weir said gas prices in Regina jumped by about 20 cents per litre last month and suggested that worry over the carbon tax might have been a factor.
“I just think there was this climate of hysteria that may have made it easy for gasoline retailers to raise their prices perhaps more than what was actually warranted by the carbon tax and oil prices,” Weir said.
Weir attributes that “hysteria” to conservative politicians, many of whom were posting pictures of themselves filling up on gas before the carbon tax would add 4.6 cents per litre on April 1.
However, Dan McTeague, senior petroleum analyst for Gasbuddy.com, said the sticker shock at the pumps can be explained by wholesale prices in the crude oil and gasoline markets.
Since the beginning of March, the price of WTI crude oil has risen from $57 per barrel to about $64 per barrel.
As well, the spot market for gasoline in Chicago, which dictates gas prices in the prairies and the U.S. midwest, has also seen price increases, from $1.60 per gallon to $2.13 per gallon.
Accounting for the exchange rate, that translates to about an increase of 18.6 cents per litre, McTeague said.
“We know that traditionally, gas prices tend to go up around this time of year in April. We’ve seen not only oil but also gas prices on the open markets move up. (That’s) not something that a couple gas stations can be responsible for in downtown Regina,” he said.
By Tuesday morning, the price of gas at many stations in Regina had reached 129.9 cents per litre.
