Gasoline station in Parksville this spring as prices crept towards record levels in B.C. (Black Press Media)

VIDEO: B.C. gasoline prices higher but reason not clear, inquiry finds

B.C. Utilities Commission finds no evidence of collusion

Gasoline prices in southern B.C. run about 13 cents per litre higher than other jurisdictions, and six cents higher in the north, for reasons that a B.C. Utilities Commission panel was not able to determine.

The BCUC released its final report on B.C. gasoline and diesel prices Friday, finding that while there is small number of wholesale suppliers to B.C., the panel found no evidence of collusion between producers.

The reasons for the price gap with other parts of Canada are “unexplained,” panel chair David Morton said Friday.

The panel says the B.C. government could consider regulating retail prices, as is done in Nova Scotia, with a price set once a week and the cost of regulation added to the price as an additional tax.

Jobs, Trade and Technology Minister Bruce Ralston said the BCUC findings vindicate the sense B.C. customers have that they are being “ripped off,” with wholesale supply restricted to four major producers.

“Our government is concerned with the allocation of refined gasoline flowing into B.C., as well as the lack of transparency around how the gas price is set,” Ralston said.

Premier John Horgan called the inquiry in May after gasoline prices soared to new highs, breaking the North American record in Metro Vancouver with prices reaching $1.70 per litre. Horgan hinted at collusion between fuel producers and retailers to increase profits, rejecting suggestions that his government’s opposition to expanding the Trans Mountain pipeline adds to supply restrictions that push B.C. prices up.

Horgan also directed that the BCUC not to consider fuel taxes for carbon emissions, transit and federal and provincial taxes, which are among the highest in Canada.

RELATED: Horgan says spike in gasoline prices is profit, not taxes

RELATED: Trans Mountain gives contractors 30 days to get ready

Representatives of gasoline suppliers appeared at the hearings, rejecting the suggestion they were orchestrating high prices and detailing the rising taxes and cost pressures on B.C. Among them was Parkland Fuels, which now runs the former Chevron refinery in Burnaby that is the last producer of gasoline and diesel in southern B.C.

“With the supply of refined products shipped via the Trans Mountain pipeline having been sharply constrained since 2015, B.C. demand has been met by ever more expensive sources of supply from as far away as California, the U.S. Midwest and the Gulf Coast,” Parkland said in its submission to the BCUC.

Parkland listed the cost increases it and other producers have faced in B.C. since 2015, including carbon tax increases, a 21 per cent increase in minimum wage, credit card costs and rising property values. B.C.’s carbon tax rose in April to $40 a tonne of carbon dioxide emissions, which translates to 8.89 cents on a litre of gasoline and 10.23 cents for a litre of more carbon-intensive diesel.

Trans Mountain’s 65-year-old line delivers refined fuels as well as crude from the Edmonton area to Burnaby refining and shipping, as well as refineries in Washington. National Energy Board statistics show that for 2018, more than half of its flow, 158,000 barrels per day, was crude exports to the U.S., with another 62,000 barrels per day directed to export via tankers filling at Westridge terminal in Burnaby. Another 47,000 went to the Burnaby refinery and 27,000 barrels per day was devoted to refined products.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

Update: Woman arrested in ongoing homicide investigation in Prince George

Mounties are asking for public’s assistance in the case.

Youth voyageur canoeing program being developed in Vanderhoof

New Caledonia Paddlers Club are collaborating with SD91 and NVSS to develop the program.

COVID-19: 23 non-profits funded in northern B.C. through emergency support fund

Both Vanderhoof and Fraser Lake have received funding through United Way’s first round of allocations.

Vanderhoof man dead following two-vehicle collision on Canada Day

The incident occured on Highway 97C near Barnes Lake Road in Ashcroft.

Police investigate July 2 homicide in Houston

Man succumbed to injuries at Pearson Road residence

Horrifying video shows near head-on collision on Trans Canada

The video was captured on dash cam along Highway 1

Fraser Valley woman complains of violent RCMP takedown during wellness check

Mounties respond that she was not co-operating during Mental Health Act apprehension

B.C. sees 12 new COVID-19 cases, no new deaths

Three outbreaks exist in health-care settings

Lost dog swims Columbia River multiple times searching for home

The dog was missing from his Castlegar home for three days.

COVID-19: B.C. promotes video-activated services card

Mobile app allows easier video identity verification

ICBC to resume road tests in July with priority for rebookings, health-care workers

Tests have been on hold for four months due to COVID-19

Would you take a COVID-19 vaccine? Poll suggests most Canadians say yes

75 per cent of Canadians would agree to take a novel coronavirus vaccine

Budget officer pegs cost of basic income as calls for it grow due to COVID-19

Planned federal spending to date on pandemic-related aid now tops about $174 billion

Most Read