A perfect storm of low supply and high demand have pushed gasoline prices to record levels in British Columbia, handing a Coquitlam gas station the new mantle of the most expensive in the province.
Shortly after noon today, April 4, the Esso at 1707 Austin Avenue in Coquitlam was charging $1.669 per litre.
Gas prices across the Tri-Cities are set to push today's record even higher this summer.
The previous record was last set on Oct. 13, 2018 when an Enbridge natural gas pipeline exploded near Prince George. For one day, that Saturday, prices soared to $1.639 per litre in Metro Vancouver.
This time around, gas prices are getting squeezed from all directions. To start with, the drastic shift in temperature over the last few weeks has led gas stations to switch over from a cheaper, winter blend to a lighter, more expensive summer formulation.
From the south, about a third of the Lower Mainland’s gas comes from two refineries in Washington State, but both are below normal output because of spring maintenance. “That's pushed up wholesale prices everywhere,” Canada’s ‘Gas Guru’ Dan McTeague told The Tri-City News.
Then there’s the on-going dispute over the Trans Mountain pipeline, one that could take a turn for the worse depending on whether the winner of the April 16 Alberta election invokes Bill 12, which calls for a reduced flow of gasoline to B.C.
To fill the gasoline supply gap, buyers are turning further abroad, in particular to the Pacific Rim nations of Indonesia, Singapore and South Korea. But redirecting gasoline from other markets comes at a premium and that translates to higher prices at the pump.
On Monday, the B.C. government’s carbon tax increase went into effect, bumping the cost per tonne of carbon from $35 to $40, nudging up the cost of gasoline about 1.16 cents per litre at the pump.
As we move into the summer, prices across the Lower Mainland are only expected to grow. On July 1, the Translink’s motor fuel tax will kick in, bumping the levy from 17 cents per litre to 18.5 cents per litre.
“All of these things bode in favour of much higher prices and record prices on average for Metro Vancouver drivers,” said Mcteague.
“If people are going to wait 30 minutes at Costco to save a few cents they're certainly going to drive down to Blaine to save $25 a tank on a day like today. You're now talking 1,300, 1,400 bucks a year.”
