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

Vancouver Island Symphony conductor Pierre Simard is releasing his new synthwave album ‘Plandemic’ on March 5. (Photo courtesy Olivia Simard)
Vancouver Island Symphony conductor releasing side-project EP of electronic music

Pierre Simard, recording as Plan Omega, presents ‘Plandemic’

Two women were arrested in Nanaimo for refusing to wear masks and causing disturbance on a B.C. Ferries vessel. (File photo)
Nanaimo ferry passengers who refused to wear masks and caused disturbance fined $460 each

Incident happened Sunday, Feb. 21, aboard the Queen of Cowichan

Beef to the woman walking two dogs that attacked my two small chihuahua dogs along Estevan Road. I was dragged down the embankment with my dogs. All three of us were pinned against the fence by your dogs with no escape route. Your dogs were on retractable leashes that were not appropriate for their size and weight and you had no control over them at all.
Beefs & Bouquets, Feb. 24

To submit a beef or a bouquet to the Nanaimo News Bulletin, e-mail editor@nanaimobulletin.com

The Port of Nanaimo has signed a 50-year-agreement with DP World around short-sea shipping operations at Duke Point Terminal. (News Bulletin file photo)
Port of Nanaimo and DP World sign 50-year shipping operations agreement

Lease agreement ‘important first step’ in $105-million Duke Point expansion project

A Nanaimo RCMP vehicle in the Woodgrove Centre parking lot. (News Bulletin file photo)
Woman groped by stranger in mall parking lot in Nanaimo

Incident happened near bus loop Saturday, Feb. 20, at about 4:45 p.m.

Dr. Bonnie Henry talk about the next steps in B.C.'s COVID-19 Immunization Plan during a press conference at Legislature in Victoria, B.C., on Friday, January 22, 2021. THE CANADIAN PRESS/Chad Hipolito
456 new COVID-19 cases in B.C., 2 deaths

Since January 2020, 78,278 have tested positive for the novel coronavirus in B.C.

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a UHN COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. (THE CANADIAN PRESS/Nathan Denette)
Vaccinating essential workers before seniors in B.C. could save lives: experts

A new study says the switch could also save up to $230 million in provincial health-care costs

(Black Press Media file photo)
B.C. residents can reserve provincial camp sites starting March 8

B.C. residents get priority access to camping reservations in province

Nanaimo’s Joanne Secord is a quarterfinalist in Inked Magazine’s Cover Model Search contest. (Janayh Wright Photography)
50-year-old Nanaimo mom hopes her tattoos will earn her a magazine cover shoot

Joanne Secord on cusp of semifinals in Inked Magazine contest

Nanaimo Courthouse. (News Bulletin file photo)
Motorist sentenced to two years for dangerous driving causing death on Gabriola Island

William Goosman pleaded guilty last fall in connection with incident that killed Jay Dearman

According to a new poll, a majority of Canadians want to see illicit drugs decriminalized. (THE ASSOCIATED PRESS)
Majority of Canadians think it’s high time to decriminalize illicit drugs: poll

More than two-times the B.C. residents know someone who died from an overdose compared to rest of Canada

The late Michael Gregory, 57, is accused of sexually exploiting six junior high students between 1999 and 2005. (Pixabay)
Former Alberta teacher accused of sexually assaulting students found dead in B.C.

Mounties say Michael Gregory’s death has been deemed ‘non-suspicious’

Photograph By @KAYLAXANDERSON
VIDEO: Lynx grabs lunch in Kamloops

A lynx surprises a group of ducks and picks one off for lunch

Most Read