The Atlantic Convenience Store Association is blasting the provincial gas regulation system as broken.
ACSA President Mike Hammoud says while the regulation might be good for consumers, it makes gas a money losing business for independent retailers.
He adds the Energy and Utilities Board is putting independent retailers at a disadvantage by only setting a maximum price of gas which is better for bigger players.
“The independent retailers are really stuck between a rock and hard place in trying to compete,” says Hammoud. “Because it gets to a point where they have to make a decision as do I sell below my cost to compete with what these other guys are doing or do I keep my price where it is and lose the volume?”
He says New Brunswick is the only Maritime province that doesn’t set a minimum retail price for gas.
“Both Nova Scotia and PEI have minimum retail prices, and those are put into place to protect supply and to protect retailers, and they have a maximum in place to protect consumers,” says Hammoud.
He says it’s a lose – lose situation, and the government has said they have no interest in helping out retailers by aligning their policies with the other Maritime Provinces.
“We’re still technically having those conversations to find a way to solve what we believe to be a problem,” says Hammoud. “Since 2011, there have been 87 gasoline retailers that have closed in the province.”
Hammoud says for the last 10 years gas retailers have been working earnestly to cut costs by chopping staff and staff hours.
