The brilliance of the gas price inquiry

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Looks like Andrew Wilkinson laid another rotten egg; this time in relation to fuel prices.

Oh?

When gas prices spiked to $1.70 (or higher) per litre a few months ago, it triggered the NDP to convene an inquiry to ascertain the reasons why BC’s gas prices were so out of tune with the rest of the country; with an eye towards collusion if it could be discovered.

Well the report came back, and while collusion (between big oil companies) couldn’t be proven, the report did cite the virtual monopoly of only 5 companies that controlled the marketing and delivery of fuel to BC. And something about an inexplicable 13 cent extra that we’re paying in BC compared to anywhere else.

13 cents per litre extra.

That’s not ‘taxes’ either.

Taxes, while significantly higher than the rest of Canada on BC’s regional fuel prices, are probably the most transparent part of what costs go into your fuel tank. At any rate, if one is looking for blame on that file, the NDP increased the carbon tax on fuel by one penny; hardly justification for this price differential.

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Where Andrew Wilkinson has screwed up badly here is where he hitched his wagon to the narrative that the NDP’s fuel taxes are too high while simultaneously ‘blocking’ pipelines. Well the taxes, though higher, aren’t the NDP’s fault, and it was legitimate court action by first nations who have brought delays to Kinder Morgan. I’m not sure the BC Liberals want to instigate that kind of fight.

But in banging that drum, the BC Liberals have exposed big oil, though not necessarily acting in collusion, but acting like a virtual monopoly. That 13 cents per litre is a significant boost to a profit margin, now it has a political defender (at the expense of regular commuting drivers) in Andrew Wilkinson. This is not the position he wants to find himself in; defending big oil at the expense of average folks.

But there is a silver lining here.

In boosting fuel prices thanks to what can be best described as profiteering, its pushing electric vehicle sales, and its making driving less affordable (incentive not to drive); achieving a climate change goal in one fell swoop. Best thing about this? Its completely a market driven result.

Good work Andrew.

My2bits

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