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The agency that investigated BC’s record-high gas prices in the summer has released a supplementary report stating that it still cannot provide answers for an unexplained 13 cents in the cost of every litre.
The British Columbia Utilities Commission (BCUC) received 41 letters of comment from the public and submissions from five interveners following the release of its Aug. 30 report.
But despite these contributions, BCUC said there is “no concrete evidence to definitively adjust the unexplained 13cpl”.
The unexplained 13 cents were discovered when comparing Southern BC prices to those across the border in the American Pacific Northwest.
In the supplementary report, the agency explained that the cost of the most expensive 5% of gas supply in the Pacific Northwest is “driving the price of all gasoline sold in BC.”
It adds: “The unexplained difference in wholesale gasoline prices applies to all gasoline sold in BC on top of the additional margin that already exists on that gasoline which has been sourced at a lower price.”
The panel concluded: “The unexplained difference in wholesale prices raises the question as to whether there is a well functioning competitive gasoline and diesel market within BC.”
Premier John Horgan called the public inquiry in May as prices reached a record-breaking $1.70 per litre.
The three-member panel was asked to explore factors influencing gas and diesel prices, not including taxes, since 2015 and actions the province could take.
Up to early 2015, there was a difference of about five cents per litre between Vancouver wholesale prices and the Pacific Northwest spot prices. By 2019, the gap had widened to about 20 cents per litre, 13 cents of which remains unaccounted for, the report says.
– With files from the Canadian Press
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