Weed price gap widens
The Canadian Press - Jul 10, 2019 - Business Buzz

Photo: The Canadian Press

The average cost of a gram of cannabis from the illicit market continues to drop as legal prices rise, with authorized retailers charging as much as 80 per cent more, according to an analysis by Statistics Canada.

The government agency said Wednesday that the average price of an illegal gram of pot was $5.93 in the second quarter, down from $6.23 in the previous quarter and $6.51 in the prior quarter.

The cost of a legal gram of weed, however, was $10.65, up from $10.21 in the previous quarter and $9.82 in the fourth quarter of 2018, based on self-submitted quotes.

At $10.65, legal cannabis in the second quarter is roughly 80 per cent more costly than the $5.93 price tag on illicit weed.

“The share of respondents who reported purchasing illegally due to ‘legal cannabis being too expensive’ rose from 27 per cent in the first quarter of 2019, to 34 per cent in the second quarter,” the Ottawa-based agency said in a release.

Statistics Canada based these conclusions on price quotes gathered using the StatsCannabis crowdsourcing application between April 1 and June 30. Out of 697 price submissions, 572 of were deemed plausible, it said.

Overall, based on these voluntary submissions, the average price per gram of cannabis fell to $7.87 from $8.03 in the previous quarter, largely attributed to lower reported illegal prices.

The share of StatsCannabis respondents purchasing pot illegally rose to 59 per cent during the quarter, up from 55 per cent in the first quarter.

Statistics Canada urged caution when interpreting the data, as the quotes are self-submitted and the number of responses are limited.


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