April 12, 2019 9:27 am

Statistics Canada survey finds legal marijuana more expensive than black market pot

Cannabis supply shortage impacting prices

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Statistics Canada’s 2019 first-quarter crowd-sourced cannabis prices survey found legally purchased pot is expensive.

Nationally, the average is 56.8 per cent higher than buying pot illegally.

Jenna Brant is a medical marijuana user.

She was surprised at the prices at the two new cannabis stores that opened in Kingston this month.

“I only pay $7, $8 a gram. So to come here and it be $14 for one gram that’s crazy.”

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READ MORE: B.C. saw lowest average weed price hike in Canada after legalization: StatCan

Nick Pateras is the V.P. of Strategy at Lift & Co. and says legal marijuana sellers like his company have expenses the black market doesn’t.

“For example, having products tested, having it adhere to certain quality standards, quality control standards,” he said.

A shortage of legal cannabis is also affecting prices as well, says Pateras.

“As more supply comes online [and] more product comes available, we’ll see natural price compression as we’ve seen in all the U.S. states.”

READ MORE: Here’s how much cannabis costs across Canada

Until that correction occurs, Brant says she’ll continue to buy elsewhere.

“The reserve and stuff like that, that’s a huge market already there, they have close to 200 stores. [They] are not regulated but sorry, that’s where I’m going to go.”

Statistics Canada’s survey makes a key point about analyzing data in the report highlighting the number of responses in some parts of the country is small and there may be statistical bias.

© 2019 Global News, a division of Corus Entertainment Inc.

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