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Several oil companies have been hit with a class action lawsuit alleging they conspired to overcharge retail purchasers of gasoline in British Columbia.
Plaintiff Antonio Pantusa filed the gas price class action lawsuit earlier this summer in the Supreme Court of British Columbia.
The defendants named in the B.C. gas price class action lawsuit include Parkland Fuel Corporation, Suncor Energy Inc., Imperial Oil Limited, Shell Canada Limited and Husky Energy Inc.
Antonio filed the B.C. gas price class action lawsuit on behalf of himself and a proposed Class of consumers who purchased gasoline in British Columbia from any gas station or cardlock facility (except “Co-op” branded gas stations and cardlock facilities) since Jan. 1, 2015.
According to the B.C. gas price class action lawsuit, more than 5 billion litres of gasoline are sold each year in British Columbia through approximately 1,300 retail gasoline outlets and 100 commercial cardlock locations. The defendants reportedly supply about 97% of the wholesale gasoline sold through the retail gasoline market. The remaining 3% is sold under the “Co-op” brand.
“Despite retail gasoline stations and cardlock locations operating under a diversity of different brands, the Defendants directly own or control approximately 33.6% of the Retail Gasoline Market, and through long-term wholesale supply agreements this control extends to 52% of the Retail Gasoline Market,” the gas price class action lawsuit says. “This is in addition to the Defendants’ near control of the wholesale gasoline market in British Columbia.”
The gas price class action lawsuit notes that demand for gasoline remains basically steady despite fluctuations in gas prices. Because there are no close substitutes for gasoline, retail gasoline purchasers are unable to seek out alternative products.
“The Defendants were at all material times aware of these market characteristics and manipulated them to their benefit and to the detriment of the Plaintiff and Class Members,” the B.C. gas price class action lawsuit asserts.
On May 21, 2019, the Government of British Columbia reportedly directed the British Columbia Utilities Commission (BCUC) to conduct an inquiry into the factors that have affected gasoline and diesel prices since 2015 and determine which mechanisms would be available for the provincial government to moderate price fluctuations.
On Aug. 30, 2019, the BCUC released its report which concluded that the price of gasoline in British Columbia deviated significantly from the price that would be expected in a competitive market.
During the BCUC’s inquiry into the matter, the defendants were reportedly asked to explain the rising price of gasoline. Each defendant disclosed that they used the cost of the “marginal barrel” of gasoline to set their prices.
“The marginal barrel refers to the most expensive source of refined gasoline supplied to a Primary Biofuel Blending Terminal in British Columbia,” according to the gas price class action lawsuit.
Five percent of the gasoline supplied to the retail gasoline market is reportedly imported from the Pacific Northwest region of the United States, while 95% of the gasoline is reportedly sourced from refineries in Alberta, British Columbia or Saskatchewan.
The defendants reportedly disclosed that they each used the price for gasoline imported from the Pacific Northwest region of the United States as the proxy cost of the marginal barrel for gasoline, even though this price far exceeded the price for the refined gasoline sourced from the Canadian provinces and distributed through the 14 primary terminals owned by the defendants, according to the B.C. gas price class action lawsuit.
“The Defendants adopted the Marginal Barrel Pricing Scheme and the use of the PNW Spot Price by agreement between themselves and specifically for the purpose of inflating unreasonably the wholesale price of gasoline being sold in the Retail Gasoline Market, and with the express intention of harming retail purchasers in British Columbia to enrich themselves,” according to the B.C. gas price class action lawsuit.
The BCUC reports concluded that these pricing schemes used by the defendants were unfair to consumers because the defendants used the Pacific Northwest spot price to set wholesale gas prices in British Columbia even though that source of supply represents just 5% of the total supply of gasoline by the defendants to the retail gasoline market.
In addition, the defendants allegedly imposed an additional charge without justification, which the B.C. gas price class action lawsuit says is “purely exploitative of the purchasers of gasoline through the Retail Gasoline Market.” This additional overcharge reportedly ranged from 2 to 3 cents per litre.
Antonio alleges the defendants breached the Business Practices and Consumer Protection Act and engaged in a conspiracy to manipulate the price of wholesale gasoline in British Columbia.
What do you think about the B.C. gas price class action lawsuit? Do you buy gas in B.C.? Do you feel that the prices are fair? Tell us your thoughts in the comment section below!
Antonio is represented by Anthony A. Vecchio of Slater Vecchio LLP and Mat Good of Mathew P Good Law Group.
The B.C. Gas Price Class Action Lawsuit is Antonio Pantusa v. Parkland Fuel Corporation, et al., Case No. VLC-S-S-205652, in the Supreme Court of British Columbia, Canada.
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11 thoughts onB.C. Gas Price Class Action Lawsuit Claims Companies Conspired to Overcharge Consumers
The gascgouging that remains to go on, is down right illegal. How many taxes go onto our gas is unreality. I’m sure some of the taxes are taxed on top of taxes aleadt there. During the pandemic the prices we right down to 60-80 cent per litre. Gas stations stayed open mean while many store closed and lost their business. When you look at the coast of a barrow of gas it’s with in what we paid for year and years ago. It’s sicking and down right theavery.