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

Agassiz, Harrison take home the gold at the 55+ BC Games

The two communities captured 13 medals at the seniors’ games in Kelowna this year

Kent fees going up for some recreation, office services

Carafes of coffee will cost $15 at the CRCC, while private lessons at the pool will be $27

Multiple accidents on Highway 1 slowing morning commutes

One accident just past 232 Street in Langley, second is just East of Bradner Street in Abbotsford

Hope firefighter receives commendation for 50 years of service

Fred Robinson began his career on Vancouver Island, still working hard

East Coast comedian Ron James bringing ‘Full Throttle Tour’ to Chilliwack Cultural Centre

James is at work on the first draft of his first book, ‘All Over the Map’

VIDEO: Agassiz Fall Fair celebrates 115 years of fair fun

From 4H shows to pie eating contests, the annual fair brought its best to the community this year

Defense says burden of proof not met in double murder case against Victoria father

Closing statements begin in trial for man accused of killing daughters Christmas 2017

B.C. dog breeder banned again after 46 dogs seized

The SPCA seized the animals from Terry Baker, 66, in February 2018

Surrey mom allegedly paid $400,000 for son in U.S. college bribery scam

Xiaoning Sui, 48, was arrested in Spain on Monday night

Three dogs found shot dead in Prince George ditch

The three adult dogs appeared to be well cared for before being found with gunshot wounds, BC SPCA says

Vancouver police could be using drones to fight crime by end of year

The police department has already purchased three drones, as well as three others for training

B.C. party bus company to be monitored after 40 intoxicated teens found onboard

Police received tip teens and young adults were drinking on party buses and limousines in Surrey

Grand opening of Molson Coors Fraser Valley Brewery at Chilliwack cause for celebration

Ribbon-cutting with dignitaries, Molson brass and family marked the official grand opening

B.C. cabinet minister denies that Surrey mayor’s friend attended government meeting

Surrey councillor questions Vancouver businessman Bob Cheema’s involvement in official meeting

Most Read