May 11, 2007

Canadians getting gouged for gas, study says

Ottawa, Ontario – Canadians have been paying too much for gas for nearly two years, according to an analysis released by the Canadian Centre for Policy Alternatives (CCPA).

The analysis, by economist and CCPA research associate Hugh Mackenzie, calculates how much Canadians should be paying for gas, and finds that since August 2005, prices have consistently exceeded levels that would be justified on the basis of cost and normal profit margins.

Mackenzie says that drivers in Toronto are currently being overcharged 15 cents per litre; Halifax is 19 cents; Winnipeg is 21 cents; Edmonton is 18 cents; and Vancouver overpays by 27 cents per litre.

In order to help Canadians know what they should be paying for gas, and to know when they are being overcharged, CCPA has developed an online gasoline price “gouge meter” based on Mackenzie’s calculations. The site can be found at or

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