MONTREAL (CBC) - Drivers in the Laurentians started paying three cents more per litre on Tuesday after the province's energy board hiked gas prices to protect independent retailers.

Quebec's Régie de l'énergie imposed the price increase after independent gas stations in Saint-Jérôme complained about Costco's lower petrol prices.

Intergaz lodged a complaint about local gas prices, arguing Costco's gas was too cheap for smaller businesses to compete.

Costco has defended its prices, saying its ability to sell cheaper gas is due to the company's cost-cutting strategy that includes refusing credit card payments, limiting business hours and selling only regular and super gasoline.

The mandatory price increase is in effect for one year.

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