B.C. VIEWS: Regulating fuel prices not a new idea

B.C. VIEWS: Regulating fuel prices not a new idea

Fuel prices seem to remain stubbornly high in many places of B.C.

Premier John Horgan’s NDP government is going full tilt against oil companies, bringing in a bill last week to require companies to hand over import, pricing and supply data to the B.C. Utilities Commission.

The proposed legislation is eerily similar to a move to regulate fuel prices more than 80 years ago by Horgan’s predecessor, Liberal Premier Duff Pattullo. While Horgan may be unfamiliar with that move in the depths of the Depression, it is worthwhile noting that Pattullo’s bid to regulate retail and wholesale fuel prices ended very badly for him.

His two-term government failed to win a majority government in the next election in 1941. His own party deposed him so a coalition government of Liberals and Conservatives could take over under former finance minister, John Hart. Pattullo put down the loss at least partially to the battle with big oil, writing to a friend (as quoted in Martin Robin’s Pillars of Profit) “This antagonized some very powerful interests. From that day to this, a constant campaign has been waged against me personally.”

The prime motivation for this latter-day assault on oil companies is the successful campaign the NDP mounted in the 2017 election to make life more affordable for British Columbians. Promises to end Medical Service Plan premiums (the final bills are now in the mail) and get rid of tolls on two bridges in the Lower Mainland were enough to give the NDP extra seats in Surrey, Delta, Maple Ridge and Pitt Meadows. It’s having more challenges controlling higher ICBC premiums, caused by the “raging dumpster fire” that shows no sign of easing up.

The shockingly high price of gas in the spring months (it jumped to over $1.70 per litre) promoted Horgan to ask the B.C. Utilities Commission to investigate. The commission could find no rational explanation for about 10 to 13 cents of the per litre price – leading to the latest legislation.

Of course, there are many factors in B.C.’s high gas prices. Taxes are one – in particular the carbon tax (which the NDP has raised) and the TransLink fuel tax in the Metro Vancouver region. Another factor is transportation – there are just two small oil refineries in B.C., one in Burnaby and one in Prince George, so most fuel sold here is refined in Edmonton or Washington state.

GAS PRICES 101: Where B.C. drivers’ pretty pennies are going at the pump

Fuel prices seem to remain stubbornly high in many places, particularly more remote areas. Recently, Squamish residents mounted a protest against high prices in their community, which is just outside Metro Vancouver. Powell River residents also say that prices there remain stubbornly high. This may at least partially due to reduced competition and the fact that two ferry rides are needed for fuel to be delivered there.

The government wants to move rapidly to carbon-free transportation (it has a goal of banning the sale of new gas-powered vehicles by 2040), the reality is most people require gasoline or diesel fuel to power their vehicles. Horgan’s government may be on to something – but they also should consider that fuel prices in Quebec and the Atlantic provinces, which regulate gas prices, are sometimes among the highest in Canada. This is despite the fact that Canada’s largest oil refinery is Irving Oil in Saint John, New Brunswick.

Mixing oil and politics can become messy.

Frank Bucholtz is a columnist and former editor with Black Press Media. Email him at frank.bucholtz@blackpress.ca

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Naomi Morrisseau and daughter Genesis Reign-Soldat. (Surrey RCMP photo)
Surrey mom and young daughter found and are safe, police say

Naomi Morrisseau and her daughter Genesis Reign-Soldat, age 3, had been reported missing in Whalley

File photo
Surrey RCMP arrest local man accused of threatening Councillor Jack Hundial, prime minister

Hundial said he received a death threat ‘that basically said to put a bullet in me’

Ramona Kaptyn. (Submitted photo)
Ramona Kaptyn to run as Surrey Connect candidate in next election

South Surrey resident joins Couns. Brenda Locke and Jack Hundial as the slate’s third candidate

The City of Delta is receiving $77,250 from Natural Resources Canada’s Zero-Emission Vehicle Infrastructure Program for the installation of 20 electric vehicle charging stations at public facilities in the community, like this one outside the new North Delta Centre for the Arts. (James Smith photo)
Delta to receive $77K for more electric vehicle charging stations

The federal funding will help expand Delta’s network of public charging stations by 20 in 2021

White Rock Whalers head coach Jason Rogers (centre) along with other members of the team show off their whale-tail-inspired moustaches in support of Movember. (Photo courtesy of White Rock Whalers)
White Rock Whalers raise thousands through Movember campaign

Junior ‘B’ hockey team fundraising for men’s health initiatives

A man wearing a face mask to help curb the spread of COVID-19 walks in downtown Vancouver, B.C., Sunday, Nov. 22, 2020. The use of masks is mandatory in indoor public and retail spaces in the province. THE CANADIAN PRESS/Darryl Dyck
B.C. records deadliest day of pandemic with 13 deaths, 738 new COVID-19 cases

Number of people in hospital is nearing 300, while total cases near 30,000

The corporate headquarters of Pfizer Canada are seen in Montreal, Monday, Nov. 9, 2020. The chief medical adviser at Health Canada says Pfizer’s COVID-19 vaccine could be approved in Canada next month. THE CANADIAN PRESS/Ryan Remiorz
Health Canada expects first COVID-19 vaccine to be approved next month

Canada has a purchase deal to buy at least 20 million doses of Pfizer’s vaccine,

The online poster for Joel Goddard, who left his Willoughby home Nov. 10, 2020, has been updated by his family and friends who received word that he’s been found.
Langley man missing since Nov. 10 found alive and safe in Abbotsford

Family of the Willoughby area man had been searching for days. Police find him at Abbotsford Airport

A UBC study recommends an multi-government investment of $381 million to protect 102 species at risk in the Fraser River estuary. (Photo supplied by Yuri Choufour)
102 Fraser River estuary species at risk of extinction, researchers warn

UBC team develops $381-million strategy to combat crisis, boost economy

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

FILE – A paramedic holds a test tube containing a blood sample during an antibody testing program at the Hollymore Ambulance Hub, in Birmingham, England, on Friday, June 5, 2020. (Simon Dawson/Pool via AP)
Want to know if you’ve had COVID-19? LifeLabs is offering an antibody test

Test costs $75 and is available in B.C. and Ontario

The grey region of this chart shows the growth of untraced infection, due to lack of information on potential sources. With added staff and reorganization, the gap is stabilized, Dr. Bonnie Henry says. (B.C. Centre for Disease Control)
B.C. adjusts COVID-19 tracing to keep up with surging cases

People now notified of test results by text message

Most Read