In Quebec, nearly one out of three gasoline outlets is considered to be a concessionaire affiliated with a major brand such as Shell or Esso. These independent establishments generally only receive between 2 and 4¢ per liter sold from the distributor-wholesaler with whom they have a purchase contract and whose fuel is on deposit. The price is dictated by the distributor.
However, many customers pay with their credit card. The more prestigious it is, the more points it offers and the more it costs merchants. Gas station owners must pay the MasterCards and Visas of this world a fee that increases with the amount of the transaction.
<q data-attributes="{"lang":{"value":"fr","label":"Français"},"value":{"html":"Le calcul est simple à faire, explique Simon Lagacé, propriétaire du Dépanneur Reli, Harnois à L’Assomption. Si on a un taux de commission qui est à 2¢ per liter and we pay 2% of credit card fees, this tank of gas costs us money out of our pockets.”,”text”:”The calculation is simple to do, explains Simon Lagacé, owner of Dépanneur Reli, Harnois à L’ Assumption. If we have a commission rate that is 2¢ a liter and we pay 2% credit card fees, that fill-up costs us money out of our pockets.”}}”>The calculation is easy to do, explains Simon Lagacé, owner of Dépanneur Reli, Harnois in L’Assomption. If we have a commission rate of 2¢ a liter and we pay 2% credit card fees, that fill-up costs us money out of our pockets. In fact, 2% on more than $2 a liter is equivalent to at least 4¢.
André Forget, owner of several gasoline-powered convenience stores in the Montreal area, can’t take it anymore.000dollars per year. It doesn’t make sense! That’s more than my tax bill and my rent combined”,”text”:”At one of my stations, my credit card charges are 150,000 dollars a year. It doesn’t make sense! It’s more expensive than my tax bill and my rent together”}}”>At one of my stations, my credit card charges are 150,000 piasse a year. It doesn’t make sense! It’s more expensive than my tax bill and my rent togetherhe said.
The issue is less critical for corporate retailers like Couche-Tard. They have more control over costs and the ability to pass the bill on to consumers. The multinational declined to comment on this case.
Still, if it is frustrating to see the bill explode visibly at the pump, the 2,800 or so retailers, especially the independents, are far from being the first to blame.
Refiners singled out
The refining margin is exceptionally high
remarks the president and general manager of the Association of energy distributors of Quebec, Sonia Marcotte.
On a pump price of $2.17 in Montreal on Wednesday, 48¢ went to refineries. Distributors and retailers were left with less than 10¢, but that margin is normally much lower.
« The retailer’s margin varies from day to day depending on the price at the refinery, but also depending on the local market. All in all, the margins are pretty slim. »
Ottawa called to intervene
<q data-attributes="{"lang":{"value":"fr","label":"Français"},"value":{"html":"La principale préoccupation des PME en2022 is inflation, summarizes Francis Bérubé, director of provincial affairs at the Canadian Federation of Independent Business (FCEI). So there is an increase in costs, both in terms of labor and inputs, and then there are credit card fees.”,”text”:”The main concern for SMEs in 2022 is c t is inflation, summarizes Francis Bérubé, director of provincial affairs at the Canadian Federation of Independent Business (CFIB). So there is an increase in costs, both in labor and inputs, and then there are credit card fees.”}}”>The main concern for SMEs in 2022 is inflation, summarizes Francis Bérubé, director of provincial affairs at the Canadian Federation of Independent Business (FCEI). So there is an increase in costs, both in terms of labor and inputs, and then there are credit card fees.
The FCEI asks the government to force credit card issuers to reduce their interchange rates. In its budget tabled in April, the federal government reiterated its intentions in this regard, but for the moment, it is still only a matter of consultations.
With the collaboration of Gérald Fillion