Quebec gas price-fixing scheme may have been widespread

A gas price-fixing scheme in Quebec that led to several arrests last month may have been operating on a larger scale than originally reported, according to an investigation by the CBC's French-language network.

Court documents obtained by Radio-Canada include transcripts of conversations among gas retailers allegedly discussing price fixing in Montreal, Trois-Rivières, Valleyfield, Sorel, Le Gardeur and Saint-Hyacinthe.

In June, the Federal Competition Bureau accused 13 people and 11 companies of illegally fixing gas prices in Victoriaville, Thetford Mines, Sherbrooke and Magog.

The court documents include summaries of telephone conversations between some people already accused of price fixing, as well as others who were investigated during the bureau probe, but not charged.

The documents in question have not led to formal charges, but were part of the wider price collusion investigation, said Donald Plouffe, an officer with the Competition Bureau.

"It's certain that when you investigate, you obtain information," he told the French-language network. "There were a series of conversations, discussions that … that certainly raise questions."

Discussions about price-fixing would be just one element of evidence among several needed to make formal accusations, he added. It's necessary to establish whether there were "discussions between possible competitors, agreements, and [also] whether those agreements had an important effect on the market," he explained in French.

The bureau is still considering whether to press more charges in the investigation, Plouffe said.

The allegations haven't been proven in court.

3 companies pleaded guilty to charges

A three-year investigation involving wiretaps, informants and undercover agents led to the June arrests.

The bureau alleges the gas retailers — individual operators who ran their stations under the banners of Shell, Esso, Petro-Canada and Irving — were calling each other to agree on gas prices.

Three companies – Les Pétroles Therrien Inc., which operates under Pétro-T, Distributions pétrolières Therrien Inc. and Ultramar Ltd. – and one person pleaded guilty in Quebec Superior Court after the investigation was made public in June. They were fined a combined total of more than $2 million.

Three Quebec gas retailers that pleaded guilty to price-fixing were fined more than $2 million:

Ultramar ($1.85 million).Les Pétroles Therrien Inc.,Distributions Petrolières Therrien ($179,000).

Former Ultramar employee Jacques Ouellet was fined $50,000 after pleading guilty.

At the time of the charges, Competition Bureau commissioner Sheridan Scott said an "overwhelming majority" of businesses in the markets involved are accused of participating in the alleged scheme.

The bureau said it's difficult to calculate how much the alleged price fixing cost consumers.

Quebec motorist sues companies

A class-action lawsuit is pending in Quebec court after a motorist took legal action against several of the retailers accused of fixing pump prices.

Documents seeking permission to sue were filed in court in June, after the Competition Bureau announced the charges.

The guilty admission will make it easier for such a lawsuit to proceed, but it could take years, and people who sign on won't likely receive large amounts of money, said Quebec City lawyers David Bourgouin, who is handling the case.

The lawsuit was launched by an unidentified Quebec motorist.

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