Protection for Retail Gas Dealers

Changes to close a loophole and provide greater protection for gasoline retailers in Nova Scotia were announced today. Neil LeBlanc, Minister of Business and Consumer Services, said government has strengthened regulations to protect gasoline retailers from shouldering the cost of promotions.

"Retail gasoline dealers in Nova Scotia have been asking for fairness and that's what we're giving them," said Mr. LeBlanc. "Today, we're fulfilling an election promise by levelling the playing field for small gas station retailers."

Cabinet approved an amendment to Section 15 of the Motive Fuel and Fuel Oil Approval Regulations, clarifying that oil companies cannot charge local retailers for wholesale promotions, like customer reward programs. The regulation itself is not new, but Mr. LeBlanc said over the last 20 years the marketing and sale of gasoline has evolved and the regulations need to keep pace.

"The rules were not as clear as they could have been," said the minister. "While just some companies got around those rules, it was totally at odds with the intent and spirit of the regulations."

Earlier this year, consultation with stakeholders drew more than 200 written responses and telephone calls that were nearly unanimous in their message to keep and strengthen Section 15.

While the protection is especially important to Nova Scotia's rural communities, Mr. LeBlanc said the move will not likely affect the price of gas at the pumps.