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.

Just Posted

Alberta Premier Jason Kenney has announced a lottery for vaccinated Albertans. (photography by Chris Schwarz/Government of Alberta)
Our View: If a lottery would help promote vaccines, why not hold one?

Getting to 80 per cent vaccinations could be easier with a couple million-dollar prizes

Maple Ridge council is considering the next 147 townhomes at the Provenance development. (Neil Corbett/The News)
Council considers Polygon townhouse development in Maple Ridge

Another 147 units in complex at Pazarena Place

The red circle is where Wednesday morning’s earthquake originated from. (Google Maps - Volcano Discovery.com)
Magnitude 2.1 earthquake rumbles Ridge

Wednesday afternoon’s quake epi-centre was 11 km north-east of Maple Ridge

Ridge Meadows RCMP gather on Patrick Road north of McDonald Road in Pitt Meadows Thursday. (Colleen Flanagan - The News)
VIDEO: Sudden death leads to large police presence in Pitt Meadows

RCMP, ambulance and a police helicopter circled a property at Patrick Road and McDonald Road

The BC Centre for Disease Control map shows the geographic distribution of COVID-19 cases for the week ending June 12.
Maple Ridge/Pitt Meadows had increase in COVID-19 cases

BCCDC map shows case counts dropping across Greater Vancouver

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

Helen Austin performing with Trent Freeman at the 2018 Vancouver Island MusicFest. Austin is one of the many performers listed for the 2021 event.
Vancouver Island MusicFest goes virtual for 2021

Black Press to stream 25 hours of programming July 9-11

FILE – A science class at L.A. Matheson Secondary in Surrey, B.C. on March 12, 2021. (Lauren Collins/Surrey Now Leader)
Teachers’ union wants more COVID transmission data as B.C. prepares for back-to-school

BCTF says that details will be important as province works on plan for September

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

Provincial health officer Dr. Bonnie Henry outlines B.C.’s COVID-19 restart plan, May 25, 2021, including larger gatherings and a possible easing of mandatory masks on July 1. (B.C. government photo)
B.C. records 120 new COVID-19 cases, second vaccines accelerating

Lower Pfizer deliveries for early July, Moderna shipments up

A Heffley Creek peacock caught not one - but two - lifts on a logging truck this month. (Photo submitted)
Heffley Creek-area peacock hops logging trucks in search of love

Peacock hitched two lifts in the past month

The Calgary skyline is seen on Friday, Sept. 15, 2017. THE CANADIAN PRESS/Jeff McIntosh
2 deaths from COVID-19 Delta variant in Alberta, 1 patient was fully immunized

Kerry Williamson with Alberta Health Services says the patients likely acquired the virus in the hospital

The first suspension bridge is the tallest in Canada, with a second suspension bridge just below it. The two are connected by a trail that’s just over 1 km. (Claire Palmer photo)
PHOTOS: The highest suspension bridges in Canada just opened in B.C.

The Skybridge in Golden allows visitors to take in views standing at 130 and 80 metres

BC Green Party leader and Cowichan Valley MLA Sonia Furstenau introduced a petition to the provincial legislature on Thursday calling for the end of old-growth logging in the province. (File photo)
BC Green leader Furstenau introduces old-growth logging petition

Party calls for the end of old-growth logging as protests in Fairy Creek continue

Most Read