Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
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.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
11 thoughts onB.C. Gas Price Class Action Lawsuit Claims Companies Conspired to Overcharge Consumers
There is never a explanation on why gas goes up on weekend holidays and why the price can drop late at night.
The prices of gas always goes up during a long weekend. Summer and holidays. If you look at the cost of a barrel from years ago to now. you’ll find that the same priced barrel years ago the price of gas was lower than today if the price per barrel was the same. The price of gas is much higher.
There is definitely price gouging going on. How does it go up over 10 cents from one day to the next ? When the gasoline in there tanks are the same gas from the day before. How does this price gouging is continuing to be allowed is beyond me.
Yes I believe in the class action suit on fuel pricing. I live in b.c. And buy gas and diesel both of which suffer from price fixing. Long weekends or holiday season prices go up for no reason. They have rotating price increases and decreases as long as the consumers tolerate it why is gas 5 cents a litre different from one town to the next within 20 kilometres of each other. They shut down refineries at peak times for maintenance and use the excuse to drive up prices.
Sign me up to the class action .
BC residents have been ripped off for year on gas prices.
Have people noticed how the prices go sky high on long weekends, summer season and the Holidays when more people are travelling.
I watched the barrel price at the covid slump this year remain steadily low, but prices adjusted .50/L from 86cents/L back to their previous highs of 1.36/L, this all happened as barrel prices baRely waivered. So price gouging is definTly hapening here in BC. And it PISSES ME OFF
Yes this is so unfair the cost of gas in bc was way higher then the cost of gas in the Yukon i could not believe how much I had to pay for gas while I was there for two weeks not right in my books anyway.
This is just horrible to hear. It is expensive enough for most people to live comfortably in the lower mainland. I have to put Premium Gas in my vehicle, which is approximately $100 Per week. I would love to be a part of this lawsuit. Mainly so I can use that money and spend it on my children. For most of us… That’s who they are stealing from. Absolutely horrible! Smh
Gas companies continue to manipulate consumer prices to sustain their company stock profits at a time crude oil has (continues) to sell at low prices. Consumers are also paying for company losses in the oil field at the pump and through prov. and federal gov’t subsidies. I suggest it is borderline extortion.
The prices of gas affected me to the point where I couldn’t afford my gas and insurance (thanks icbc) anymore and had to get into a smaller car. Chrysler 200 to a Smart Fortwo. Not a bad trade especially with climate change but this was a decision I wasn’t wanting to do just yet. Like the First comment said none of the gas stations around my area went out of business during the pandemic. Strange huh? ?
The gas prices in Vancouver (Lower Mainland) are an absolute rip off. It’s necessary to speak about how every time we fill up we feel taken advantage of. And funny, when most of the population in the lower mainland and British Columbia stopped driving in March/April 2020, the price dropped 60-70 cents/litre. And not one gas station went out of business.