Quebec scraps 28-year gas floor price; impact on savings unclear

After 28 years, Quebec has abolished the floor price on gasoline.

The Legault government made the move on Monday — hoping it will lower gas prices in the province — but observers say consumers are unlikely to benefit at the pump.

At a gas station on Sherbrooke Street and St-Laurent Boulevard in downtown Montreal, prices were $1.56 per litre on Monday afternoon.

The province has faced pressure to act since the federal government scrapped the consumer carbon price, which applied across much of the rest of the country, on April 1.

In the days that followed, Quebec went from having some of the cheapest gas in the country to some of the most expensive.

In mid-April, Economy Minister Christine Fréchette announced Quebec would withdraw its floor price on gasoline and other fuels — a measure in place since the 1990s to protect small service stations from being undercut by larger players.

She framed the decision as a way to boost competition and ultimately lower prices.

Fuel retailers are no longer required to respect an imposed floor price, paving the way for a potential price war at the pump.

The government says it wants to give power back to consumers while stimulating competition between service stations across the province.

In 2026, a new transparency obligation will come into force: all retailers will have to report price changes to the Régie de l’énergie in real time, with the information posted online. The measure is designed to help motorists compare prices close to home.

–With files from The Canadian Press