No elementary answers for high B.C. gas prices or impact of pipeline, NEB says
There’s no easy reason for because B.C.’s gas prices are so many aloft than a rest of Canada, or what will occur to them if a Trans Mountain tube enlargement goes ahead, according to a National Energy Board’s arch economist.
The NEB expelled a picture of a issue Wednesday, violation down a elements that have driven adult a cost during a pumps in B.C.
“It’s a multiple of countless factors,” arch economist Jean-Denis Charlebois told CBC. “One cause is that we’re coming a summer pushing season. This means direct is increasing.”
Another is a fact that B.C. depends on a Cherry Point Refinery in Washington State for many of a gas, and a sell rate has recently been reduction than favourable.
According to a NEB’s summary, a 4 vital components that make adult a cost of gasoline include:
- The cost of wanton oil: averages 51 cents per litre in Vancouver, or 10 per cent next a Canadian average.
- Refining costs: averages 52.1 cents per litre in Vancouver, or about double a inhabitant average. This includes all a losses concerned in bringing wanton from a wellhead to a refinery, and afterwards completing a enlightening process.
- Marketing margin: averages 10.5 cents per litre, about 69 per cent aloft than a rest of Canada. This includes all costs for removing a polished product to a consumer, including transportation, selling and profit.
- Taxes: averages 53.9 cents per litre in Vancouver, or 21 per cent some-more than a inhabitant average.
Charlebois pronounced a NEB has not damaged down a several pieces that make adult any of these 4 components to see how they review in B.C. That means, for example, that he has not analyzed how a normal distinction margins for gas stations differ opposite a country.
As for one of a many contested questions in Western Canada, Charlebois pronounced gas prices could go possibly approach if a Trans Mountain tube enlargement plan is finished as planned.
“If a prolongation is authorized and built … this will boost ability and directionally will concede some-more gasoline to upsurge from Alberta to B.C., thereby augmenting supply and putting downward vigour on prices,” he said.
But during a same time, “it will yield Canadian producers larger entrance to general markets, thereby putting ceiling vigour on prices of wanton oil. How those dual army will net out stays to be seen.”
Article source: https://www.cbc.ca/news/canada/british-columbia/bc-neb-gas-prices-explainer-1.5137302?cmp=rss