CPPI ADDRESSES CONFUSION IN CAMPAIGN
By Adnews Staff
The Canadian Petroleum Products Institute of Ottawa wants to take the confusion out of gasoline pricing. The organization launched a national newspaper campaign this week that addresses the issues most often raised by consumers such as: why pump prices fluctuate so frequently, why prices seem to go up and down in unison, why prices are sometimes higher on long weekends and why prices vary from region to region. The ads were created by Cossette Communication-Marketing of Montreal. CPPI is launching the campaign in response to a recent survey in Eastern Canada that shows consumers are confused and frustrated regarding gasoline prices and retailing practices. Ninety per cent of the respondents said that Canadian gas prices are somewhat high or very high. CPPI says that gas prices are among the lowest in the industrial world, when you exclude taxes. Seventy-eight per cent of those surveyed think gas prices have increased over the past five years. According to CPPI, when taxes are excluded, gas prices declined slightly between 1992 and 1996. Seventy-seven percent of respondents believe the fact that many retailers sell gas at the same price is evidence of collusion. CPPI says that if prices are not the same, retailers face the prospect of losing customers. A federal probe last year found no evidence of price-fixing in the industry. Other survey findings include: 86% of respondents say they are bothered by fluctuating gas prices, 67% feel that prices may increase if the small independent gas retailers disappeared, 91% feel there is too much tax incorporated into gas prices and 61% think it would be a bad idea for government to intervene in gas prices, and more than half think such as intervention would lead to higher prices. The study was conducted by Impact Research.