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B.C.91裸聊视频檚 costly gasoline partly due to low-carbon requirements

B.C.91裸聊视频檚 increasing requirement similar to Oregon, California
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B.C.91裸聊视频檚 carbon tax is the highest in Canada, and the low-carbon fuel standard is increasing. (Black Press Media)

B.C.91裸聊视频檚 requirement to continue reducing the 91裸聊视频渃arbon intensity91裸聊视频 of its gasoline and diesel until 2020 is unique in Canada, and fuel suppliers argue this is one reason why prices are higher than surrounding jurisdictions.

B.C. matched the federal low-carbon fuel standard of a five per cent reduction in carbon intensity in 2010, and went further, requiring a 10 per cent reduction by 2020. Similar regulations are in place in California and Oregon, but not in other Canadian provinces.

The reduction is typically achieved by blending plant-based ethanol with gasoline or vegetable-based fuels with diesel, which can cost more and requires additional storage and blending.

The B.C. Utilities Commission delivered on high fuel prices last week, as directed by the B.C. government in May after gasoline and diesel prices hit record levels. Premier John Horgan suggested profit taking by oil companies was the main reason, and directed that taxes and other government policies such as the low-carbon fuel standard should not be considered.

Companies testified about the effect of government policies anyway, and some argued that biofuel costs are a factor.

In a , then-energy minister Bill Bennett said lowering the carbon intensity of fuels further 91裸聊视频渋s achievable through the use of emerging fuels; for example, gasoline made from natural gas, lower carbon diesel produced through advanced bitumen refining, and renewable diesel made from vegetable oils or tallow.91裸聊视频

BCUC chair David Morton said that taxes aside, there is an 91裸聊视频渦nexplained91裸聊视频 13-cent increase in southwestern B.C. gasoline prices compared with the U.S. Pacific Northwest, where the spot wholesale price for urban B.C. is set.

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In northern B.C. there is a six per cent jump in price compared to Edmonton where that region91裸聊视频檚 wholesale spot price is set, taking into account refinery disruptions, crude prices and other industry factors.

91裸聊视频淧rices in the Metro Vancouver region are higher by an unexplained 13 cents a litre, and they91裸聊视频檙e higher than would be expected under more competitive conditions,91裸聊视频 Morton said as he released the report. 91裸聊视频淭here is no evidence to suggest collusion among the retail operators exists, nor is there evidence of cartel behaviour.91裸聊视频

The price gap for B.C. calculates out to $490 million a year in extra sales revenue for suppliers, which Jobs, Trade and Technology Minister Bruce Ralston claimed shows B.C. residents are being 91裸聊视频渞ipped off91裸聊视频 due to a lack of wholesale competition.

91裸聊视频淥ur government is concerned with the allocation of refined gasoline flowing into B.C. as well as the lack of transparency around how the price of gas is set,91裸聊视频 Ralston said.

In B.C., provincial tax on a litre of gasoline currently amounts to 34.39 cents per litre for Metro Vancouver, including 17 cents to fund TransLink operations. Victoria region transit tax adds 5.5 cents, and across the province carbon tax currently adds 8.89 cents. Another 6.75 cents applies across B.C. to fund the , a Crown corporation that owns all provincial highways and land held for future infrastructure.



tfletcher@blackpress.ca

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