Motorists fuel up at a Shell gas station in Vancouver on Sunday, April 22, 2018.DARRYL DYCK/The Canadian Press
Premier John Horgan says his government is looking into whether British Columbians are being gouged by high gasoline prices, and wants the federal government to join in on looking at the issue.
On Thursday, Mr. Horgan told a news conference that Ottawa should help protect consumers grappling with the highest gasoline prices in North America.
According to GasBuddy.com, a Boston-based company that monitors gas prices across North America, gasoline in Metro Vancouver was at $1.61 cents a litre on Thursday − a continental record the area has held for many weeks.
“I would certainly welcome the federal government to get into the game here and protect consumers,” Mr. Horgan said.
“We’re looking at that within the provincial government, to use the tools we have to review whether there are incidents of gouging or collusion, but certainly, for the travelling public, I understand their frustration. There doesn’t seem to be any rhyme or reason to it.”
The Premier did not provide any details on what specific measures his government would apply to the issue.
Mr. Horgan also said there should be more transparency in gasoline pricing.
“I would certainly believe that’s a good way to go. I’ll be talking to the Prime Minister, I’m sure, on oil-related issues in the next couple of days, and I’ll bring that up.”
During a visit to Vancouver last month, Prime Minister Justin Trudeau cited record-high gasoline prices in the Vancouver region as he defended the Trans Mountain pipeline expansion.
Mr. Horgan and his government are sharply opposed to that expansion owing to concerns about environment risks that would come with the increased flow of bitumen and the tankers to deal with it.
Mr. Trudeau, whose government approved the expansion of Kinder Morgan’s pipeline in 2016, suggested an expanded pipeline could ease pressures from Canada being so closely associated to the U.S. market − by opening up Canada’s oil to new markets while reducing dependency on the United States.
Mr. Horgan said the high gasoline prices work against his government’s affordability policies on such issues as medical-services premiums and bridge tolls.
“While we’re doing that, gas companies seem to be finding ways to take those savings out of people’s pockets, and I believe they will have to answer to the travelling public. Why is it that the commodity is at 70 bucks a barrel and the finished product is at $1.60 [a litre]? That’s on them.
“Certainly government has a role to play in that. I don’t dispute that, but somewhere along the line, someone is making a lot of money. It’s not government, and it’s not the travelling public.”
Andrew Wilkinson, the leader of the BC Liberal opposition, said in an interview that the province should provide some relief to consumers by reducing the taxes it charges on gasoline.
According to the April, 2018, tax bulletin from the B.C. Finance Ministry, taxes on clear gasoline in the Vancouver area include a 17-cent tax for TransLink, the regional transportation authority; a 6.75-cent tax for the British Columbia Transportation Financing Authority; a 1.75-cent provincial motor fuel tax for general revenue; and 7.78 cents in carbon tax for a total 33.28 cents. But tax levels vary elsewhere in B.C., adding up to 27.78 cents in the Victoria area and 22.28 cents in the rest of the province.
“The idea that they are going and ask the federal government to give motorists a relief in B.C. while kicking [the federal government] in the shins on Kinder Morgan is ridiculous,” Mr. Wilkinson said.
“Premier Horgan is looking for scapegoats. He has backed himself into a corner on a number of files.”
Dan McTeague, a senior petroleum analyst for GasBuddy.com, said there are a lot of “moving parts” around gasoline prices including the carbon tax and opposition to the expanded Trans Mountain pipeline.
“[Mr. Horgan] is taking this to a difficult extreme and it’s political bluster,” Mr. McTeague said in an interview.
Ian Bailey