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.

Just Posted

Fish Are Food: A look at seafood sustainability

Conference at Maritime Heritage Centre to discuss food security from a marine perspective

Area director concerned about status of barge ahead of expected windy conditions

Uncertainty of Nana Provider’s hull condition adding to unease

Smile cookies kick off Campbell River’s 46th Christmas Hamper Fund

As Tim Hortons owners Cathy and Dave Paquin smilingly put it, “A… Continue reading

Campbell River’s Canyon View Trail loop planned for opening in mid-December

Campbell River trail users were hopeful the Canyon View Trail loop may… Continue reading

Campbell River youth soccer nets vandalized, stolen

Last weekend, Nov. 9-10, some of the Campbell River Youth Soccer Association’s… Continue reading

VIDEO: Disney Plus adds disclaimer about racist stereotypes

Disney’s disclaimer is a good way to begin discussion about the larger issue of racism

B.C. woman seeks return of jewelry box containing father’s cremated remains

Sicamous RCMP report handmade box was stolen from a storage locker

Vancouver police officer charged with sexual assault in apparent off-duty incident

Jagraj Roger Berar, 51, of Surrey, charged in incident alleged to have happened in Whistler

CN Rail confirms job cuts as weakening economy cuts into freight volumes

Railroad also said it was affected by a slowdown in the B.C.’s forestry sector

Port Alberni mom takes school district to court over Indigenous smudging, prayer in class

Candice Servatius, who is an evangelical Christian, is suing School District 70

New case of vaping-related illness in Quebec brings national total to 8

Quebec health minister considering tightening the rules around vaping products

Greens to vote against Liberal throne speech unless carbon targets toughened: May

Green leader Elizabeth May and Prime Minister Justin Trudeau met Friday, discussing common ground

Senior dies after suffering medical emergency and crashing vehicle in Nanoose Bay

Bystanders performed CPR while waiting for first responders

Man, 50, dies following incident in downtown Parksville

Teenage girl hailed as hero for intervening after witnessing situation unfold

Most Read