Smith, who famously coined the term the invisible hand of the market, was a strong believer of the self-regulating nature of the marketplace.

This axiom has since become a fundamental principal of modern day economics and has thus been adopted into law.

Sadly, three Canadian oil and gas companies weren’t made aware.

These companies include Pioneer Energy LP, Canadian Tire Corporation, and an outfit who seemingly is all too familiar with the concept of ‘nominative determinism,’ Mr. Gas.

All three companies have pleaded guilty to charges under the Competition Act for price fixing.

So what are the ramifications for ripping off the fine people of Kingston and Brockville?

Will they lose their license to sell and distribute oil and gasoline? No.

Ah, the respective leaders of these companies will be put behind bars for conducting unethical business practices? Again, no.

Okay, then surely they will have to pay back their loyal and hardworking customers? Still no, eh? (That said, if you’re one of the few affected consumers who has both the time and money, you can sue to recover damages under section 36 of the Competition Act.)

In the end, these three oil and gas companies have been lightly slapped on the wrist with fines in the hundreds of thousands of dollars, making their CEO’s have to wait an extra hour or two before buying that 5^th chalet in Whistler.

The stock value of the Canadian Tire Corporation has fallen over the previous seven days (Photo credit: Yahoo.com).

Oh the humanity!

And where do these fines end up going? According to the Competition Bureau: “The fines are remitted to the general consolidated revenue fund of the government.”

YAWN!

While corporate chancery in Canada pales in comparison to other countries, I would think this light penalty will do very little to deter other companies from attempting to bend the rules.

The Middle East gets into a self-inflicted muddle and the news is suddenly full of stories about gas prices spiking to $4 a gallon and counting.

How much you want to bet that, next quarter, our major oil companies will break previous records AGAIN for unconscionable profits?

Today, they’re mumbling excuses that places like China are straining supply with their growing consumption. They know Americans aren’t going to buy the line that their driving habits are driving up prices. Too many people are out of work and too many people are still driving less since Big Oil’s last huge faux crisis after Hurricane Katrina.

I’m no mathematician, but if gas prices rose parallel to the cost of oil, oil company profits should remain flat. Yet they never do.

Oil companies seem to be pouncing on the opportunity to gouge while they can blame the Middle East.

Since nobody can predict when the Middle East will ever calm down (which is probably never), it’s Big Oil’s intention to inflate prices meteorically before anybody can stop them and make it the new “normal” for American families to spend most of their disposable income on gas. A year from now, “cheap” $5 gas will seem like something we dreamed.

As usual, Washington sits on its thumbs, waiting for another recession to hit before it even thinks about taxing Big Oil’s windfall profits. After all, the more money Oil has, the more politicians it can buy. So what if “little people” have to choose between gas and food?

Every price jump at the pump will fuel consumer fury, culminating in the next obscene oil profit announcement, and that fury will head for Washington like a freight train just as the 2012 election campaigns kick off.

Meanwhile Congress is playing on the tracks with oil company lobbyists.