Premier John Horgan is calling on the B.C. Utilities Commission to look into why gasoline is more expensive on the South Coast and Vancouver Island than the rest of the country.
In a letter, the premier called on commissioner chairman David Morton to explain why the price of gas has shot up so dramatically in the span of a few months.
According to the letter, Morton has the ability to hold hearings that will provide residents with the necessary evidence and recommendations for the best path forward.
"I believe an independent arbiter (is needed) to lay out how we got here," Horgan told CTV.
In Horgan's letter to the commission he writes, "wholesale prices have ranged between 2.5 and 4 cents per litre more in Vancouver than in Edmonton, but that gap has widened over the last four years to almost 24 cents a litre."
He goes on to write that B.C. residents can't accept a situation where gas prices are way out of step with the rest of the country, and called on oil companies to explain their prices.
Dan McTeague, senior petroleum analyst for GasBuddy.com, says the problem lies in the lack of supply in the South Coast, largely due to the high wholesale prices directly south in the U.S.
“You have a shortage, your own government admitted you have a shortage - it’s really a reflection of what’s happening in the relevant market immediately south of the border," he said.
Those wholesale prices dictate what British Columbians are forced to pay for gas, he says.
Instead, McTeague says the province should offer a tax rebate, a tax cut at gas pumps or drop the opposition to expanding pipelines.
According to the letter, Horgan spoke with Prime Minister Justin Trudeau on Monday, bringing up concerns that $1.70 per litre is of national importance.
Horgan says Trudeau is claiming that his hands are tied by market forces.
Despite Horgan's calls for an investigation, Metro Vancouver residents say the pinch from the pump is leading to drastic lifestyle changes.
"I used to drive out to Tsawwassen from Langley and I had to take a job in Aldergrove because I can't afford it, said Kimberly Kennedy, a commuter.
But according to the B.C. director of the Canadian Taxpayers Federation, if Horgan wants to get to the bottom of high gas prices, he need only look in a mirror.
"They are restricting the supply of gasoline, by thwarting the expansion of pipelines, including the Trans Mountain pipeline, and by constantly jacking up taxes on gasoline," said Kris Sims.
She sees this independent investigation as a waste of time and taxpayer dollars.
"If Premier John Horgan wants to get to the bottom of this big mystery - he needs to investigate himself and his government."
With a report from CTV News Vancouver's David Molko
