Vancouver gas prices hit $2/litre as premier defends taxes

When it comes to skyrocketing gas prices, B.C.’s premier is defending fuel taxes in this province, pointing the finger at the federal government and global instability.

Prices across Metro Vancouver reached new heights Friday at $2.009 per litre.

Premier John Horgan was asked Thursday about gas taxes in B.C. He said carbon pricing is a key part of the federal and provincial climate action plans.

“We have committed as a government in two election campaigns to get to $50 a tonne for taxing pollution. And we intend to do that come April 1 … and that of course was a result of a federal mandate. The federal government mandated all provinces to meet that objective,” he said, arguing B.C.’s early adherence to carbon pricing makes it easier for the province to meet its target compared to others.

He says while taxation is “one part” of the increase, “an 18-cent a litre increase overnight has everything to do with international instability and of course, the events unfolding in Ukraine.”

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Outside of Metro Vancouver and Victoria, the provincial tax per litre is 24.46 cents.

In Victoria, A 5.5 cent “Dedicated Motor Fuel Tax” is applied, which goes towards BC Transit.

In Metro Vancouver, drivers pay 37 cents per litre to the province, which includes an 18.5 cents TransLink tax as well, as well as an additional 10 cents per litre in carbon tax which, in April, will go up to 11 cents.

Taxes are one reason Metro Van pays more.
There’s $0.37/litre provincial tax on gas.
That’s a $0.27 fuel tax and a $0.10 carbon tax.
Total includes MetroVan’s 18.5 cent TransLink gas tax, and a 6.75 cent tax for roads and bridges and 1.75 cent tax for province’s general revenue. https://t.co/CKc5XeQHZ5

— Mike Lloyd (@llikemoyd) March 3, 2022

Horgan defended the taxes, noting they go towards building roads, funding public transportation, and modernizing infrastructure. He also pointed to the atmospheric river last year that caused catastrophic flood damage to many parts of the B.C. South Coast, including Abbotsford’s Sumas Prairie region.

“I think people understand better than in the past how fragile our infrastructure is and how important it is to make those investments and carbon pricing and the gas taxes are part of that,” Horgan said.

Anyone in B.C. who makes more than $44,842 a year also is no longer eligible for the province’s carbon tax rebate of $197.

BREAKING: Gas Prices in #Vancouver have now tipped over the $2.00 per litre mark. This is at the corner of Main Street and East 2nd Avenue. Watch as the price ticks up and over into a new record. https://t.co/PTENHgoORw @CityNewsVAN @CityNewsTraffic pic.twitter.com/PSASOSX8cR

— Chad Harris (@ChadHarrisTV) March 4, 2022

Gas analyst Roger McKnight with En-Pro says the Russia-Ukraine conflict was “the straw that really broke everything.”

“I can’t see anything slowing this down,” he said.

Another carbon tax is set to be imposed federally at the end of the year. It’s expected that will bring an additional 16 cents to the per-litre pump price of gasoline. Federally, a 10 cent tax is placed on fuels across the country. The government then applies the GST to the entire cost of a litre, including the other taxes.

Many have called on the B.C. government to put a cap on gas prices, similar to action taken during the November floods, but B.C. Energy Minister Bruce Ralston says there are no plans to do this, given a key force driving the price of gas up is ultimately Russia’s invasion of Ukraine and is outside of the province’s control.

“For the government to step into the private market and set prices and fix prices is a major, major step and has unintended consequences,” he said, warning that could lead to gas companies drying up supply to drive prices even higher.

– With files from Sonia Aslam