Quebec Energy Minister thinks gasoline taxes should be raised

Quebec Minister of the Economy, Innovation and Energy Pierre Fitzgibbon believes that gasoline taxes should be raised.

He made the statement while announcing that his government would put an end to the floor price on fuel in order to reduce its cost at the pump.

Asked by a reporter why his government wasn't lowering gasoline taxes, Fitzgibbon replied: "Lowering fuel taxes? I think they should be raised."

A few minutes after this statement, Fitzgibbon wrote on X: "Some journalists have misinterpreted what I said; the government has no intention of raising the tax on gasoline."

Last year, Fitzgibbon said that the number of vehicles in Quebec would have to be halved to meet greenhouse gas reduction targets.

• LISTEN on CJAD 800 Radio: Is Quebec's plan for a gasoline floor price a dud?

Ending the price floor

On Thursday, the minister presented a study by Robert Clark, professor of economics at Queen's University in Ontario, which examined gasoline prices at the pump in Quebec.

Fitzgibbon indicated that he intended to put an end to the floor price as recommended by the study. He said he would amend his own energy bill, due to be tabled before the end of the parliamentary session, to remove "section 67 of the Petroleum Products Act (PPA), which acts as an implicit floor price for gas stations."

According to Fitzgibbon, this section, introduced in 1997, has outlived its usefulness.

He also wants to see the introduction of a gasoline price transparency regime that would require service stations to transmit their price changes on a daily basis to the energy board. The board would then disseminate these prices so that consumers are better informed.

"We want to ensure that the market rebalances," the minister said. 

However, Fitzgibbon closed the door on the idea of imposing a price ceiling or setting profit margins for gasoline stations, saying that this is not the government's role.

Notices from the energy board have shown that fuel prices are higher in certain regions of Quebec, including the Quebec City and Chaudière-Appalaches regions.

"Price trends in certain local markets are simply inconsistent with what we would like to see in a competitive gasoline market, so clearly that concerns me," the minister said. 

Asked whether there might be collusion between the different gas stations, the minister replied that he had no data that would allow him to conclude in this sense.

He left it to the Competition Bureau to do its job. 

This report by The Canadian Press was first published in French on May 16, 2024.