Gas prices drop across Lower Mainland; report suggests change related to Trans Mountain Pipeline

Drivers around the Lower Mainland in the last few days may have noticed the price of gas has dropped.

Many reported seeing a gas station in East Vancouver sitting at 158.9 Friday, and according to GasBuddy, a station in Richmond went as low as 157.9 as of Saturday.

GasBuddy shows that around this time last year, the price was around 205.2.

A report issued by the C.D. Howe Institute this month suggests that falling prices are related to the completion of the Trans Mountain Pipeline (TMX) in May.

More and more, the report says, supply being moved via rail has shifted to the pipeline — the less expensive option.

The institute says that insufficient pipeline capacity prior to the completion of the TMX cost the average B.C. household over $1,000 per year.

“B.C. gasoline consumption is generally around 1,100 litres per capita per year, and diesel consumption is around 900 litres per capita per year. Based on this, a rough calculation suggests that insufficient pipeline capacity costs the B.C. economy an average of around $500 per person per year. Since an average B.C. household consists of 2.4 people, the average household costs would be close to $1,200 per household per year,” the report says.

“This is a remarkable burden, particularly given the recent inflationary issues in Canada.”