Gas stations in Charlesbourg and Beauport in Quebec City are engaged in a price war.

A gas price war has erupted in the National Capital Region in recent days. However, one month after the abolition of the floor price, the impact at the pumps is still being felt elsewhere in Quebec.

At the beginning of June, the Legault government ended 28 years of managing the minimum price for gasoline and diesel. Energy Minister Christine Fréchette hoped to initiate a shift toward a freer and more transparent market in the oil sector. A price war was anticipated, with the goal of empowering consumers. However, it has yet to materialize in the vast majority of the country.

However, a "small exception" seems to be emerging in the Quebec region.

"Some retailers in the Charlesbourg and Beauport areas seem to be engaged in a price war, with rates well below average," notes Simon Bourassa, spokesperson for CAA-Quebec. Last weekend, prices were as high as $1.36 per liter, 15 cents less than elsewhere in Quebec.

CAA analysts point out, however, that these lower prices were already observed in this sector even before the abolition of the floor price.

Today, some gas stations near Seigneuriale Street and Louis XIV Boulevard still offer the lowest prices in the region, at $1.45 per liter. By comparison, the price exceeds $1.50 in downtown Quebec City and elsewhere.

Costco takes advantage

Players like Costco seem to be playing the big guns. "At Costco, at least on Bouvier Street [in Quebec City], we're at $1.32, which is well below the average. You'd have to go back to 2021 to see prices this low at Costco," notes Simon Bourassa of CAA.

"This may be an effect of the abolition of the estimated minimum price, but it is too early to say for sure. We will have to observe price trends over a longer period."

For now, the Energy Minister's office hopes to wait a few weeks before making an initial assessment of its measure.

There are too many factors influencing the price at the pump, such as the war in Iran and the summer period, explained spokesperson Catherine Pelletier.

"According to the ministry's observations, there have been some more sporadic and local events, but they do not have widespread information," she reports.

Little margin for retailers

According to Sonia Marcotte of the Association of Energy Distributors of Quebec, these retailers do not even cover their acquisition costs.

On this Friday, July 4, retailers are paying an average of $1.44 per liter for the gasoline they resell.

"The population and even the government have a poor understanding of what the minimum price was," she laments.

The floor price was intended to protect smaller retailers. It imposed a minimum price at the pump, based on the cost of purchasing fuel from refineries (see box).

^Marcotte warns that a price war could hurt retailers and ultimately drive up prices for consumers.

"The abolition of the floor price isn't necessarily just hot air. If a price war becomes entrenched, it will hurt retailers and could lead to closures."

She therefore considers it normal that prices remain relatively stable, stressing that even stations affiliated with major brands could not sustain a prolonged price war.

"There are 940 gas stations that are not part of a corporate network," she recalls.

What was the floor price in Quebec?

• Imposed in 1997
• Minimum price at the pump
• Included: crude oil prices, transportation, margins, taxes
• Goal: Protect small retailers
• Abolished in June 2025
• New objective: to stimulate competition and lower prices