Senior Petroleum Analyst with Gasbuddy.com Dan McTeague believes an investigation into the skyrocketing gas prices in BC is political posturing.
Premier John Horgan announced this week he has asked the province’s Utilities Commission to explain why the price has increased so much over the past months.
McTeague explains a Freedom of Information report states the province is in a bind where the demand is increasing and the supply is not.
“Demand in BC has increased significantly by 15% between 2012 and 2016 and you’ve got to figure that by this year that number might be a lot closer to 20 or 25%. Think about it, the demand is increasing and the supply cannot match that demand.”
McTeague believes the premier is experiencing a reality check when it comes to this issue.
“Originally this premier said it was all about gouging, well, I think the premier is now being introduced to a reality called markets and supply and demand. You don’t have enough supply and the demand in places like Vancouver has been skyrocketing.”
“Blocking the pipeline is one thing but it also presides over and it is not just this government but previous governments as well that the clean fuel standards is adding several cents of fuel to the price of gasoline, which in my view is a hidden tax and we also have increasing taxes however small one tries to mitigate this.”
However, he believes the investigation shouldn’t impact the northern capital too much as it’s one of the most competitive markets in BC.
“We already know the small refinery has a positive impact by about four or five cents a litre at least because you have one in your own backyard and we also know that the competitive landscape on the retail side is second to none with many gas stations offering fuel with no or very little retail margin.”
Prices at most stations are at 135.9 cents a litre while Costco is a tad lower at 131.9.
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