Question Period Note: BC Gas Prices Report

• We understand the challenge British Columbians are facing with fluctuating, high gas prices across the province.
• The movement of oil and gas in Western Canada is governed by market dynamics.
• The British Columbia Utilities Commission found that the Trans Mountain pipeline is not a significant factor in gasoline prices in B.C.
• The new Trans Mountain Expansion project — currently underway — will bring additional capacity to B.C., which could give the market further options for the transport of gasoline.
• Although shippers and market demand will determine what products move through both pipelines, additional pipeline capacity could help the market better adapt when circumstances change.
• The Canada Energy Regulator provides independent oversight to ensure the Trans Mountain pipeline operates equitably and in keeping with the highest safety and environmental standards.
• The government remains committed to working with provinces and creating market conditions to promote a secure, reliable and affordable energy supply for all Canadians.
If pressed on pipeline tariffs:
• A pipeline company’s tariff contains the conditions under which transportation service is provided.
• Tariffs ensure a level playing-field for suppliers who ship products through a pipeline
• Applications and complaints about tariffs may be filed with the Canada Energy Regulator at any time.
If pressed on shipper contracts:
• In the case of Trans Mountain, shippers have made long-term contract commitments ranging from 15 to 20 years that will underpin the cost of construction and the operating costs.

On November 12, 2019, the BC Utilities Commission (BCUC) published a Supplementary Report to its Inquiry into Gasoline and Diesel Prices in British Columbia (Final Report issued on August 30, 2019). The Supplementary Report confirmed that there is no evidentiary basis to explain the 13 cents per liter difference in wholesale gasoline prices between southern B.C. and the Pacific Northwest, which was one of the main findings of the August 30 report.

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