Fuel prices: even retailers are losing money

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The rise in gas prices over the past year has largely contributed to rising inflation, which reached 6.8% in April. Five service station owners in Lanaudière have come together to denounce a situation that is currently under the radar screen when you pay with a credit card at the pump.

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In Quebec, nearly one in three gasoline outlets is considered a concessionaire affiliated with a major brand such as Shell or Esso. These independent establishments typically accept only between 2 and 4 cents per liter sold from the distributor-wholesaler with whom they have a purchase contract and where the fuel is deposited. 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 greater the cost to traders. Gas station owners must pay MasterCards and Visas of this world a fee that will increase the transaction value.

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The calculation is easy to do, explains Simon Lagacé, owner of Dépanneur Reli, Harnois at L’Assomption. If we have a commission rate of 2 cents per liter and we pay a 2% credit card fee, that filling is worth money out of our pockets. In fact, 2% on more than 2 dollars per liter equals at least 4 cents.

André Forget, owner of several gasoline-powered convenience stores in the Montreal area, can no longer cope: At one of my stations, my credit card charges are 150,000 piasse a year. Worthless! That’s more than my tax bill and my rent combined.

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 the case.

However, if it’s frustrating to see the bill explosion at the pump so obvious, 2,800 or more retailers, especially independents, are far from being the first to blame.

Selected by refiners

The margin of refinement is very highsaid the president and general manager of the Association of energy distributors of Quebec, Sonia Marcotte.

At a bomb price of $ 2.17 in Montreal on Wednesday, 48 cents went to refineries. Distributors and retailers are left with less than 10 cents, but that margin is usually lower.

" The retailer’s margin varies daily depending on the refinery price, but also depends on the local market. On the whole, the margins are pretty thin. "

- A quote from Sonia Marcotte, President and General Manager of the Association of Quebec Energy Distributors

Ottawa called to intervene

The main concern for SMEs in 2022 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 charges.

Ang CFIB asking the government to force credit card issuers to reduce their interchange rates. In its budget filed in April, the federal government reiterated its intentions in this regard, but for now, it is only a consultation.

In collaboration with Gérald Fillion

Source: Radio-Canada

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