B.C. needs to lower gas taxes, says critic, as prices hit historic levels

B.C. is facing historically high gas prices, and the situation is only expected to get worse as time goes on.

Liberal finance critic Peter Milobar says while the Ukraine War is affecting global gas prices, the B.C. government could help relieve the problem on a local level.

“The disappointing part is that for four years the premier said they were working on a plan to bring down gas prices if they stay high,” said Milobar. “There are some government policies and government taxation issues they could address in the short-term to bring some relief.”

As B.C. gas prices rise over $2/litre, Milobar said Washington state is paying is nearly 60 cents a litre less, while Alberta is paying nearly 70 cents less.

Milobar pointed out some potential causes, as B.C. drivers face a dramatic difference in gas prices compared to the province’s neighbours.

“They had an importation surcharge of 25 cents a litre that’s been in place since January 1st of this year,” said Milobar.

“They also have the highest gas taxes on top of that, in North America.”

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The finance critic also says if the government is helping keep gas prices high to help address emission levels, it is time for them to explain that to B.C drivers.

“Every other minister talks about how … they’re trying to make sure that essentially the price of gas is high,” Milobar argued. “They’re still not discounting mobility pricing on roads all in an effort to try to drive down emissions. They can’t have their cake and eat it too”

Bruce Ralston, minister of energy, mines and petroleum resources attributed the rise of gas costs to worldwide supply issues, but did acknowledge the price was unprecedented and the government is looking at solutions to the problem.

“We were able to provide a rebate to drivers that is coming this week,” Ralston said.  “That’s some relief, but certainly doesn’t compensate for the complete rise in price.”

The minister also responded to Milobar’s idea of lowering taxes, saying that if the province got rid of the tax, oil companies could take advantage.

“What the economists tell us is that if we were to take away those taxes the oil companies would step in and scoop that money too,” said Ralston. “It’s not a solution that works.”

Ralston also said the government had no plans to make any changes to the carbon tax.

“The carbon tax went up a penny on April 1st … I don’t think anyone really noticed that,” said Ralston. “The carbon tax is an important part of our climate change strategy.”

Roger McKnight, chief petroleum analyst with En-Pro International, isn’t convinced that B.C. drivers will see better gas prices any time soon.

“I can’t see anything stopping prices going up,” McKnight said. “This is because there is a severe problem with supply of crude oil, gasoline, and diesel. The inventories are very, very low indeed.”

Gasoline isn’t the only fuel on the rise, as diesel prices are escalating at around the same rate.

“A year ago, the national average pump price of diesel was $1.23/litre. Today it sits at $2.06/litre,” McKnight said. On a local level, diesel price is closer to $2.35/litre in the Lower Mainland.

With files from Sonia Aslam