Summary#

Bill 91, the Fairness in Petroleum Products Pricing Act, 2022, would create a new Ontario law. It would give the Ontario Energy Board (OEB) power to set weekly maximum retail prices for petroleum products and minimum mark-ups for retailers; its stated goal is more predictable, stable and transparent pricing.

• The OEB may set different maximum prices and minimum mark-ups for different areas. The Lieutenant Governor in Council (the provincial cabinet) may make rules governing how they are set, including prescribing prices, mark-ups and areas.
• Retailers could not sell above a maximum price set by the OEB. Wholesalers could not sell at a price that leaves retailers with less than the set minimum mark-up.
• Wholesalers and retailers would have to keep records of each sale for at least five years, unless the OEB decides otherwise.
• The OEB could receive complaints, make inquiries and appoint inspectors. Inspectors could enter relevant business premises at reasonable times, examine and copy records, and require reasonable assistance. They could not enter a place used as a dwelling without the occupant’s consent.
• The OEB could impose an administrative penalty of up to $100,000 for each day or part of a day of a contravention, and could add the monetary benefit gained. A separate offence could bring a fine of up to $500,000 for each day; a wholesaler or retailer that pays an administrative penalty for a contravention cannot be charged with an offence for that same contravention.
• The bill covers gasoline and diesel used mainly in internal combustion engines, and could also cover furnace oil or stove oil if prescribed.

What it means for you#

• Drivers and other consumers: The bill itself does not set a price. If the OEB sets a maximum, retailers must not charge more. The bill does not guarantee lower prices or say how the maximum would be calculated.
• Retailers and wholesalers: They would have to follow any prices and mark-ups set, keep sale records and cooperate with inspections. The bill does not set the actual price or mark-up in its text.
• The OEB: It would gain pricing, complaint, inquiry, inspection and penalty powers. Setting prices is a power, not a duty.
• Cabinet: It could make rules governing price-setting, including rules that prescribe prices, mark-ups and areas.

Money#

No cost information is in the available material.

• The bill gives the OEB power to appoint inspectors and impose penalties, but provides no estimate of staffing, enforcement or record-keeping costs.
• It does not set a fee, provide an appropriation, or estimate how regulated prices could affect what consumers or businesses pay.

What is unclear#

• The bill does not set a price-setting formula, explain how often prices would be reviewed, or require the OEB to set prices.
• It does not specify how the minimum mark-up would be calculated in practice, or how the OEB would decide on different prices or mark-ups by area.
• The bill does not set out a process or timeline for complaints, pricing decisions, or appeals. Regulations could add procedures for administrative penalties, but none are included here.
• The bill says orders made by the OEB would not be subject to Part III of the Legislation Act, 2006, which applies to regulations. The materials do not explain what notice or public input would apply to those orders.
• Furnace oil and stove oil would be covered only if prescribed. The bill does not say whether cabinet would prescribe them.

Case for#

• A possible argument for the bill is that a weekly maximum could limit how high retail prices go, while allowing different limits in different areas.
• A minimum mark-up could protect retailers from being left with less than the set margin between wholesale and retail prices.
• Record-keeping, inspections and penalties could help enforce any price limits that are set.
• The bill’s stated goals include protecting consumers and supporting stable, competitive markets, including in remote, rural and northern areas.

Case against#

• The bill does not require the OEB to set prices or say how it should balance consumer prices against the minimum mark-up. Its practical effect would depend on later decisions and rules.
• A maximum retail price and minimum mark-up could affect wholesale and retail pricing, but the bill does not explain how those limits would be set or what their effects might be.
• The OEB would have broad inspection powers and could impose large daily penalties, while the bill leaves key penalty procedures to later regulations.
• Because the bill does not specify public notice or input for OEB orders, it is unclear how consumers and businesses would know about or comment on pricing decisions.