News release

Consumer Report on Gas Regulation Released

Service Nova Scotia and Municipal Relations (Oct. 2000 - March 2014)

An independent study released today, May 16, confirms that Nova Scotia consumers benefit from gas prices being regulated.

"We've said all along that gas regulation has created stability for consumers and small gas retailers and this report confirms it," said Service Nova Scotia and Municipal Relations Minister John MacDonell. "Nova Scotians have been protected from sudden and unpredictable increases in the price of gas, leaving at least $8 million in consumers' pockets since regulation was introduced."

For the first time, government has reviewed gas regulation from the consumer perspective, rather than industry, to get a better understanding of the impact. The Petroleum Product Prices and Price Regulation in Nova Scotia: A Consumer's Perspective report was prepared by Roderick Hill, professor of economics, University of New Brunswick.

Through regulation, price changes are more predictable and stable, which helps consumers when deciding on gas purchases. Price differences between different regions in Nova Scotia have been minimized. They are closely connected to fuel transportation cost differences.

According to the report, removing gas regulation would likely result in a return to multiple daily/weekly price changes without notice; higher prices in smaller, less competitive areas; potentially higher prices in competitive markets; a greater impact of unregulated transportation costs on markets; and a greater regional difference.

An executive summary of the report is available at www.gov.ns.ca/snsmr .