Gasoline prices in B.C. have risen in line with land costs and credit card processing fees, but that doesn91裸聊视频檛 fully explain why they91裸聊视频檙e so much higher than in other parts of Western Canada, a new report says.

The report by Deetkten Group was posted online late Wednesday by the B.C. Utilities Commission, which is overseeing a public inquiry into sky-high gas prices in the province.

The consultant91裸聊视频檚 report says Vancouver91裸聊视频檚 gasoline retail margins, which are the difference between the wholesale price for fuel and the retail price less tax, 91裸聊视频渉ighly91裸聊视频� correlates with local land values.

It also says credit card processing fees are applied as a percentage of a total transaction, meaning the fees will be higher in jurisdictions like Vancouver where prices at the pump are already high.

91裸聊视频淩ising land costs and credit card processing fees may account for nearly the entire differential observed between Vancouver and comparable areas, at least up to the end of 2018,91裸聊视频� the report says.

But even after those factors are taken into account for this year, 1.4 cents per litre in the retail margins remains unexplained.

The report also can91裸聊视频檛 fully explain why wholesale gas prices are much higher in B.C. cities compared with other jurisdictions.

The consultants compared wholesale prices in Vancouver and Kamloops with Edmonton and Seattle, which are also sources of supply for B.C.

Transportation and regulatory costs may account for higher wholesale gas prices in B.C., but even estimating those costs at their highest potential doesn91裸聊视频檛 explain the difference, it says.

91裸聊视频淓ven the highest estimates of transport and regulatory costs combined do not sufficiently account for the differential in wholesale prices between the Vancouver market and the Edmonton and Seattle markets, particularly in 2019,91裸聊视频� the report says.

READ MORE:

A differential of about five cents per litre between Vancouver and Edmonton this year is unaccounted for in the report.

Unlike gas prices, diesel prices have remained largely consistent with historical trends when compared with other parts of Western Canada.

91裸聊视频淭his may be in part due to different demand dynamics in the diesel market,91裸聊视频� it says.

Premier John Horgan ordered the inquiry in mid-May as the price of a litre of regular gasoline climbed above $1.70.

In commissioning the probe, he said that gas and diesel price increases were 91裸聊视频渁larming, increasingly out of line with the rest of Canada, and people in B.C. deserve answers.91裸聊视频�

Four days of oral submissions are to begin next week and the three-member panel can question industry representatives, including gas and diesel suppliers.

Amy Smart, The Canadian Press

Like us on and follow us on