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Subject: Re: Gas prices to rise in Nova Scotia by 5 cents a liter by june Posted on: 31 May 2005 04:23:16 GMT

In
"dvd and computer part guy" writes:


>Thanks for the info.

You're welcome.


>I'm hesitant to call it regulated still, but I see where he's coming
>from. What I mean is like it says, it can impose a minimum price,
>though to date hasn't chosen to do so,

Actually the web site states that they can impose a *maximum* but
haven't chosen to do so. They have imposed a minimum. (Or was that
just a typo above? :-)


>and you can't sell far below the market value.

Right, that's the part that is in force right now.


>The PM can impose martial law, but we don't live
>under martial law is the argument I'd use.

That makes sense. :-)


>Could the law not be to keep big Esso/Shell/Petro Canada from knocking
>out the small guys?

If I recall correctly (I can't find a source for this part :-), I'm
pretty sure that that was exactly the reason that was given.

I seem to recall that the law in question was passed just after a price
war that occurred around 1998, at a time when prices in the Montreal
area dropped from around 70 cents to around 50 cents per liter. I'm
probably not remembering the exact details correctly, but I'm fairly
sure that's how it happened in general.


>It was just explained to me that the price of milk in Quebec
>has a minimum price, and it's to help the mom and pop and small chain
>setups.

I suspect it may be more for the benefit of dairy farmers rather than
retail stores, but you're right that the principle is the same.

...though one major difference is that unlike gasoline, milk isn't
subject to Quebec sales tax -- so the government doesn't benefit
directly from higher milk prices in the way that it does from higher
gas prices.

What, me cynical? :-)

- Steven
________________________________________________________________________
Steven Winikoff | "You can leave in a taxi. If you can't
Concordia University | get a taxi, you can leave in a huff.
Montreal, QC, Canada | If that's too soon, you can leave in a
smw@alcor.concordia.ca | minute and a huff."
http://alcor.concordia.ca/~smw | - Groucho Marx