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Canada among three G20 countries least likely to hit emissions targets: report

Canada’s plan to meet its greenhouse- gas emissions targets is among the worst in the G20, according to a new report card on climate action.

Climate Transparency issued its annual report Monday grading all the countries in the group of 20 with large economies on their climate performance and finds none of them has much to brag about. The international group compiles data on countries’ emissions and policies in an attempt to push them into investing in clean technology.

The G20 nations account for 85% of global economic activity and in 2018 produced 80% of all greenhouse-gas emissions, which accumulate in the atmosphere and trap heat.

B2G-Report-2019_Cover-PageThe report says about half the G20 members—19 countries with advanced economies plus the European Union collectively—are on track to meet their current targets for cutting emissions by 2030 but those targets are much too mild. If every G20 member does not drastically scale up its targets, the G20 overall will produce more emissions in 2030 than it does today, Climate Transparency said.

Canada, South Korea and Australia are the farthest from meeting targets to cut emissions in line with their Paris Agreement commitments, but those commitments are nowhere close to enough, the report says. Canada’s per-capita emissions, the greenhouse gases it releases divided by the number of people who live here, are the second-highest in the G20, behind only Australia.

Canada’s national reports show existing plans will leave Canada about 80 millions tonnes shy of its existing 2030 goal of 513 megatonnes of carbon dioxide and equivalents. That target is only about half as tough as it needs to be, Climate Transparency argues.

Under all current G20 targets, the world is projected to warm by 3 C by the end of the century. After 1.5 C, scientists say there is a “growing risk that critical tipping points will be crossed, at which point the Earth’s system will experience major and largely irreversible changes.”

Critical water shortages will be five times greater in G20 nations at 3 C of warming, compared with 1.5 C, the report said. As well the average number of days above 35 C in G20 countries each year will exceed 50 at 3 C compared with 30 at 1.5 C. Drought, extreme rainfall, food scarcity, shorter growing seasons and greater spread of insect-borne diseases are all among the expected problems of climate change.

Extreme weather, including that caused by climate change, already kills 16,000 people a year in the G20 and costs more than $142 billion.

The report applauded Canada for introducing a national price on carbon earlier this year, and for implementing tougher environmental reviews for major projects like pipelines and mines. But it slammed the Liberal government for approving the Trans Mountain pipeline expansion a second time in June, just days after Parliament voted in favour of a Liberal motion declaring a climate emergency.

The report says Canada is among global leaders in getting rid of coal power but is a laggard on a number of fronts, including energy use and emissions from cars and buildings.

It says Canada has four times the G20 average for emissions per person from transportation and has more than twice the average emissions from buildings. Canada’s economy is the third most energy-intensive in the G20, meaning only two other countries use more energy for every $1 of their economic production. While energy use is dropping in the G20 overall, Canada’s energy use has stayed steady over the last five years.

Climate action was a key part of the recent federal election, with four of the five parties that elected MPs pledging to do more to cut emissions and reduce energy use. The issue is expected to take centre stage in the next Parliament.

Prime Minister Justin Trudeau promised to do better than Canada’s existing 2030 commitment but did not say by how much. He also intends to get Canada to zero net emissions by 2050, meaning any emissions that do come out of Canada would be absorbed by either natural features like forests or technology like carbon capture and storage systems.

The report notes that 2020 is a critical year for climate change because it’s the year Paris Agreement signatories are required to submit new national targets.


Federal judge grants B.C. injunction against Alberta’s turn off the taps law

A Federal Court judge has granted the British Columbia government a temporary injunction against an Alberta law that could have limited oil exports to other provinces.

In a decision released Sept. 24, Justice Sebastien Grammond said Alberta’s so-called turn-off-the-taps legislation raises a serious issue and could cause irreparable harm to the residents of B.C.

“British Columbia has met the criteria usually applied by the courts for the issuance of such an injunction,” he wrote in his decision.

“It has shown that the validity of the act raises a serious issue. It has demonstrated that an embargo of the nature evoked by the members of Alberta’s legislature when debating the act would cause irreparable harm to the residents of British Columbia.”

The B.C. government initially brought the action before Alberta’s Court of Queen’s Bench, which passed it to the Federal Court.

Alberta tried to strike the action by arguing that it wasn’t in the jurisdiction of the Federal Court, but the judge dismissed that motion.

Grammond said B.C. has met the test for blocking the law until the courts can decide its validity.

B.C. Attorney General David Eby said he’s pleased the injunction was granted and the case will be going to trial.

“We think it’s quite a straight forward case, but the ultimate decision will of course be up to the court,” he told reporters in Vancouver.

“On our reading of the Constitution, Alberta is not allowed to restrict the flow of refined product to other provinces in a way to punish them for political positions that are taken they don’t like,” said Eby. “That’s our understanding of the Constitution. Alberta has a different understanding and the court will be deciding about that.”

The turn-off-the-taps legislation gives Alberta the power to crimp energy exports from the province.

It was passed, but never used, by Alberta’s former NDP government as a way to put pressure on B.C. to drop its fight against the Trans Mountain oil pipeline expansion to the West Coast.

The new United Conservative government proclaimed it into force shortly after Premier Jason Kenney was sworn into office in April, but he had said it wouldn’t be used unless B.C. throws up further roadblocks to the pipeline.

B.C. had called the law a loaded gun and had asked the courts to make sure it didn’t accidentally go off.

NDP Leader Rachel Notley said that the injunction has rendered the law useless.

“We told the premier not to proclaim this legislation because it would be like blowing up the missile while it’s still on the launchpad,” she said in a news release.

“And that’s exactly what has happened today. This injunction has rendered the legislation powerless. Any further threats from the premier to turn off the taps are empty.”

Grammond said in his decision that members on both sides of the Alberta legislature explained the law’s purpose in relation to the British Columbia government’s actions on the Trans Mountain expansion project.

“These statements make it abundantly clear that the purpose of the act is to inflict economic harm to British Columbia through an embargo on the exportation of petroleum products to that province,” he said.

The embargo, he said, would not only cause a considerable increase in the price of gas and diesel in the province, but any fuel shortages could also endanger public safety.

The Trans Mountain expansion, first approved in 2016, would triple the amount of oil flowing from the oilsands to B.C.’s Lower Mainland and from there to lucrative new markets across the Pacific.

The federal government bought the existing pipeline last year for $4.5 billion after its original builder, Texas-based Kinder Morgan, threatened to walk away from the project because of B.C.’s resistance.

The Federal Court of Appeal quashed the approval months later on the grounds that there hadn’t been enough consultation with First Nations or consideration of the pipeline’s potential impact on marine wildlife.

The project was approved for a second time by the federal cabinet this summer.


Energy prices spike after Saudi oil attack

Global energy prices spiked Monday by a percentage unseen since the 1991 Gulf War after a weekend attack on key oil facilities in Saudi Arabia caused the worst disruption to world supplies on record, further fuelling heightened tensions between Iran and the U.S.

American officials released satellite images of the damage at the heart of the kingdom’s crucial Abqaiq oil processing plant and a key oil field, alleging the pattern of destruction suggested Saturday’s attack came from either Iraq or Iran – rather than Yemen, as claimed by Iranian-backed Houthi rebels there. A Saudi military spokesman later made the same accusation, alleging “Iranian weapons” had been used in the assault.

Iran rejected the allegations, with a government spokesman saying now there was “absolutely no chance” of a hoped-for meeting between Iranian President Hassan Rouhani and President Donald Trump at the U.N. General Assembly next week.

For his part, Trump sent mixed signals, saying his “locked and loaded” government waited for Saudi confirmation of Iran being behind the attack while later tweeting that the U.S. didn’t need Mideast oil, “but will help our Allies!”

The tensions have led to fears that action on any side could rapidly escalate a confrontation that’s been raging just below the surface in the wider Persian Gulf in recent months. There already have been mysterious attacks on oil tankers that Washington blames on Tehran, at least one suspected Israeli strike on Shiite forces in Iraq, and the downing of a U.S. military surveillance drone by Iran.

Those tensions have increased ever since Trump pulled the U.S. out of Iran’s 2015 agreement with world powers that curtailed its nuclear activities and the U.S. re-imposed sanctions on the country that sent its economy into freefall.

Benchmark Brent crude gained nearly 20% in the first moments of trading Monday before settling down to over 10% higher as trading continued. A barrel of Brent traded up $6.45 to $66.67.

That spike represented the biggest percentage value jump in Brent crude since the run-up to the 1991 Gulf War that saw a U.S.-led coalition expel Iraqi dictator Saddam Hussein’s forces from Kuwait.

U.S. benchmark West Texas crude was up around 10%. U.S. gasoline and heating oil similarly were up.

The attack halted production of 5.7 million barrels of crude a day, more than half of Saudi Arabia’s global daily exports and more than 5% of the world’s daily crude oil production. Most of that output goes to Asia.

At 5.7 million barrels of crude oil a day, the Saudi disruption would be the greatest on record for world markets, according to figures from the Paris-based International Energy Agency. It just edges out the 5.6 million-barrels-a-day disruption around the time of Iran’s 1979 Islamic Revolution, according to the IEA.

Though the world’s overall energy demands in the past were smaller, the Saudi outage has sparked concern among analysts of prices pushing to $80 a barrel and beyond. Publicly traded airlines, whose major costs include jet fuel, suffered globally. That could in turn push up prices on everything from travel to a gallon of gas at the pump.

Saudi Arabia has pledged that its stockpiles would keep global markets supplied as it rushes to repair damage at the Abqaiq facility and its Khurais oil field. However, Saudi Aramco has not responded publicly to questions about its facilities.

Yemen’s Houthi rebels, who have been targeted by a Saudi-led coalition since March 2015 in a vicious war in the Arab world’s poorest country, maintain they launched 10 drones that caused the extensive damage. They reiterated that Saudi oil sites remained in their crosshairs, warning foreign workers to stay away.

U.S. officials say that the damage done to the north-facing parts of the facilities suggest the attack instead came across the Persian Gulf from Iraq or Iran. American officials have yet to offer substantial evidence to support their claims, though Iran in the past has relied on hard-to-attribute attacks or proxy forces to launch assaults against its enemies.

At a news conference Monday, Saudi military spokesman Col. Turki al-Maliki said the kingdom’s initial investigations showed “the terrorist attack did not come from Yemen as claimed by the Houthi militia.”

“This terrorist attack is a large-scale cowardly act, and as I said, targets the global economy and not just the kingdom,” al-Malki said. “All the indications and operational evidence, and the weapons that were used in the terrorist attack, whether in Buqayq or Khurais, indicate with initial evidence that these weapons are Iranian weapons.”

Al-Maliki offered no immediate evidence to support his allegations, which came after Trump said the U.S. awaited word from Saudi Arabia about who it suspected launched the attacks.

Iraqi Premier Adel Abdel-Mahdi said he received a call Monday from U.S. Secretary of State Mike Pompeo, who confirmed that the attack didn’t come from Iraq. The State Department did not immediately acknowledge what was discussed. Iraq is home to Iranian-backed Shiite militias who aided it in its fight against the Islamic State group.

Iranian Foreign Ministry spokesman Abbas Mousavi again denied the U.S. claims Monday, telling journalists the accusation was “condemned, unacceptable and categorically baseless.” Government spokesman Ali Rabiei meanwhile said a Trump-Rouhani meeting in New York as of now wouldn’t happen.

“Currently we don’t see any sign from the Americans which has honesty in it, and if the current state continues there will be absolutely no chance of a meeting between the two presidents,” Rabiei said.

Russia’s Foreign Ministry, while expressing “grave concern” about the attack, warned against putting the blame on Iran, saying that plans of military retaliation against Iran are unacceptable.

U.S. satellite photos released overnight Monday appeared to show the attack on Abqaiq, the world’s largest oil processing facility, may have struck the most sensitive part of the facility, its stabilization area. The Washington-based Center for Strategic and International Studies has said the area includes “storage tanks and processing and compressor trains – which greatly increases the likelihood of a strike successfully disrupting or destroying its operations.”

Stabilization means processing so-called sour crude oil into sweet crude. That allows it to be transported onto transshipment points on the Persian Gulf and the Red Sea, or to refineries for local production.

Fernando Ferreira, the director of geopolitical risk at the Washington-based Rapidan Energy Group, said rebuilding that infrastructure “will take many months.”

Saudi Aramco did not respond to questions from The Associated Press regarding damage at Abqaiq and the satellite images.

Meanwhile, the attacks are expected to affect gas prices here in Canada, with consumers bracing for a slight jump at the pumps.


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Unexplained difference of 13 cents in Vancouver and Seattle gas prices: inquiry

Screen Shot 2019-09-03 at 10.53.54 AMAn inquiry into British Columbia’s high gas prices says there’s an unexplained difference of 13 cents per litre between Metro Vancouver and Seattle that is costing drivers on the Canadian side of the border nearly $500 million a year.

Wholesale prices in southern B.C. are set based on those in the Pacific Northwest of the United States because it is a nearby region and a similar price is considered justifiable, B.C. Utilities Commission CEO David Morton said Friday.

However, the commission found that even after accounting for transportation costs and higher B.C. fuel standards, Metro Vancouver drivers are still paying more than those in Washington.

“The higher price differentials cannot be explained by economic theory or justified by known factors in the market, nor can the panel find a specific trigger in 2015 that would explain the beginning of this disconnect,” Morton said at a news conference.

Premier John Horgan called the public inquiry in May as prices reached a record-breaking $1.70 per litre. It was asked to explore factors influencing gas and diesel prices, not including taxes, since 2015 and actions the province could take.

Morton said some things have changed, including higher crude prices, the Trans Mountain pipeline’s capacity constraints and higher costs for retailers.

But prior to 2015, Metro Vancouver drivers paid five cents a litre more than Seattle drivers. Wholesale prices in northern B.C. are based on Edmonton prices and drivers in that part of the province pay six cents more a litre, he added.

Morton said B.C.’s wholesale market is not truly competitive because a small number of wholesalers control distribution and have the ability to influence prices.

In the retail market, companies including Parkland Fuel Corp., Suncor Energy, Shell Canada and Husky Energy have greater direct control over pricing in B.C. compared with the Canadian average, he said.

“There’s no evidence to suggest collusion among the retail operators exists nor is there evidence of cartel behaviour. However, the panel refrained from suggesting that the B.C. retail market is performing optimally,” Morton said.

“Rather, we observed that prices move up and down in a manner that gives the appearance of a functioning competitive market. But it’s also possible this pricing behaviour is choreographed.”

B.C.’s refineries have been operating at capacity since 2015 and it appears the amount of storage is not a factor in prices, he said.

The Trans Mountain pipeline changed its allocation that year to increase crude oil and reduce gasoline shipped to Metro Vancouver, he said, but more capacity would not guarantee a price reduction.

“Even if cheaper gasoline from Alberta was available, as long as pricing is based on the Pacific Northwest spot price, customers would not see the benefits of that.”

Morton said the province could consider encouraging more refinery capacity, but it would be challenging given that gas and diesel demand is projected to decline. Another option would be regulations to reduce the price differential.

Jobs, Trade and Technology Minister Bruce Ralston said the report provides “significant evidence” to support the view that price gouging exists in the market.

“An oligopoly is a word that is not used very frequently, but it means a state of limited competition in which a market is dominated by a small number of producers,” he said.

The Canadian Fuels Association said the report highlights a number of factors that contribute to B.C. price fluctuations, including increased reliance on fuel imports.

“While price regulation can moderate price fluctuations, it can also have unintended consequences. We recommend that B.C. consult with price-regulated jurisdictions to understand the real market impacts. In our view, markets work best without interference.”

Peter Milobar, a Liberal who represents Kamloops-North Thompson in the legislature, said the inquiry should have been allowed to consider the impacts of provincial taxes.

“Horgan and the NDP dragged their feet with a sham review that was barred from looking at the impact of their policies and taxation on the costs of fuel. John Horgan insisted high gas prices were due to industry collusion and this review has proven him wrong.”

Federal Fisheries Minister Jonathan Wilkinson said expanding the Trans Mountain pipeline could help reduce prices, despite Morton’s comments to the contrary.

“The lack of supply – whether that’s lack of refined product in the pipeline or it’s lack of refined product that’s being produced by the Parkland refinery – can have an impact on prices,” Wilkinson said.

“Certainly in that context, having additional capacity in an expanded pipeline may be useful.”


B.C. gas price report in the pipeline

The B.C. Utilities Commission inquiry into gasoline and diesel prices in the province is expected have its final report done by Friday.

Premier John Horgan called the public inquiry in May when gasoline prices at the pump reached a record-breaking $1.70 per litre.


Gas price inquiry questions Trans Mountain capacity, company denies collusion

One of the largest fuel companies in British Columbia says there’s no retail market more competitive than gasoline in Canada and an executive denies any price setting between competitors.

Ian White, senior vice-president of marketing and innovation for Parkland Fuel Corp., told a three-member panel leading a public inquiry into the province’s gas prices on Wednesday that a price difference of one-tenth of a cent per litre can be enough to lose customers.

Parkland Fuel operates gas stations under Chevron and other banners, supplies fuel to airlines and BC Ferries, and owns and operates a refinery in Burnaby.

White said while factors like clean washrooms and convenience stores can influence consumers, they simply won’t visit your gas station if you don’t have a competitive price for fuel.

Economist Henry Kahwaty, who was hired by Parkland, told the panel that the competitive environment leads retailers into a race to the bottom until they reach unprofitable prices, at which point there is typically a price jump and the process repeats itself.

But he said controlling that process would require a significant level of co-ordination considering almost half of the gas stations in B.C. are run by independent dealers rather than companies.

“This is not evidence of collusion,” Kahwaty said.

Representatives from Shell also told the panel the market is competitive, adding the company sets wholesale prices independently from other firms.

Premier John Horgan called the public inquiry in May as prices at the pump reached a record-breaking $1.70 per litre.

At the time, the B.C. Liberals and Alberta government bought advertising blaming Horgan and linking his government’s resistance to the Trans Mountain pipeline expansion and taxes to the surging costs.

Jean-Denis Charlebois, chief economist for the National Energy Board, told the inquiry panel he can’t account for an independent report that contradicts the board’s claim that the Trans Mountain pipeline is operating at capacity.

Charlebois told the three-member panel that in the first quarter of 2019, the Trans Mountain pipeline was operating at 98 per cent capacity.

The panel asked if he could shed light on a report by economists Robyn Allan and Marc Eliesen, the former president of the Insurance Corporation of B.C. and chief executive of BC Hydro, respectively.

Allan and Eliesen’s analysis found the Trans Mountain capacity is 400,000 barrels a day, falling to 300,000 barrels a day only if 20 per cent of the capacity is taken up by heavy oil. But it rarely reaches that threshold of heavy oil and Allan and Eliesen claim there were 97,000 barrels a day of capacity in the first quarter of 2019 that were not used.

Allan and Eliesen are scheduled to appear before the panel on Thursday.

The inquiry is tasked with exploring factors that may be influencing gas and diesel prices in B.C. since 2015 and the mechanisms the province could use to moderate price fluctuations.

Kahwaty warned that regulating wholesale prices by setting them artificially low would have the effect of actually raising retail prices because supply would be pulled out of the market as a correction.

“Wholesale regulation would have the impact of actually increasing the retail margin because we’re not allowing the market to fully clear,” he said.

“At first blush, its a counterintuitive point to make.”

Such regulation in the Atlantic provinces has targeted volatility, rather than high prices, he said.

Earlier Wednesday, Liberal Leader Andrew Wilkinson issued a statement criticizing the government for the inquiry’s short timeline and terms of reference that limit it from investigating government activity that affects gas prices.

“It is outrageous that an investigation into fuel costs would be barred from considering the impacts of fuel taxes, transit taxes, and the government’s opposition to increasing pipeline capacity,” Wilkinson said.

The panel could hear up to four days of oral submissions in Vancouver this week.

The inquiry will conclude with a final report by the panel due Aug. 30.

 


B.C. gasoline prices rose with land costs but full differentials unexplained: report

Filling Gas Tank_Sm_070218Gasoline prices in British Columbia have risen in line with land costs and credit card processing fees but that doesn’t fully explain why they’re so much higher than in other parts of Western Canada, a new report says.

The report by Deetkten Group was posted online last week by the B.C. Utilities Commission, which is overseeing a public inquiry into sky-high gas prices in the province.

The consultant’s report says Vancouver’s gasoline retail margins, which are the difference between the wholesale price for fuel and the retail price less tax, “highly” correlates with local land values.

It also says credit card processing fees are applied as a percentage of a total transaction, meaning the fees will be higher in jurisdictions like Vancouver where prices at the pump are already high.

“Rising land costs and credit card processing fees may account for nearly the entire differential observed between Vancouver and comparable areas, at least up to the end of 2018,” the report says.

But even after those factors are taken into account for this year, 1.4 cents per litre in the retail margins remains unexplained.

The report also can’t fully explain why wholesale gas prices are much higher in B.C. cities compared with other jurisdictions.

The consultants compared wholesale prices in Vancouver and Kamloops with Edmonton and Seattle, which are also sources of supply for B.C.

Transportation and regulatory costs may account for higher wholesale gas prices in B.C., but even estimating those costs at their highest potential doesn’t explain the difference, it says.

“Even the highest estimates of transport and regulatory costs combined do not sufficiently account for the differential in wholesale prices between the Vancouver market and the Edmonton and Seattle markets, particularly in 2019,” the report says.

A differential of about five cents per litre between Vancouver and Edmonton this year is unaccounted for in the report.

Unlike gasoline prices, diesel prices have remained largely consistent with historical trends when compared with other parts of Western Canada.

“This may be in part due to different demand dynamics in the diesel market,” it says.

Premier John Horgan ordered the inquiry in mid-May as the price of a litre of regular gasoline climbed above $1.70.

In commissioning the probe, he said that gas and diesel price increases were “alarming, increasingly out of line with the rest of Canada, and people in B.C. deserve answers.”

Four days of oral submissions are in the process this week and the three-member panel can question industry representatives, including gas and diesel suppliers.


Most fuel suppliers won’t release profit margin details to B.C. gas price probe

Most gas suppliers in British Columbia are refusing to share how they set prices at the pump just days before hearings on the issue are set to begin at a public inquiry.

The B.C. Utilities Commission has been ordered to review the last four years of gas and diesel pricing in the province and asked suppliers to complete a questionnaire about various business aspects including their profit margins.

Commission CEO David Morton said the inquiry panel is working to determine if it needs the financial information and to assure the companies that it won’t release confidential information.

“I don’t think there’s any cause for alarm,” Morton said in an interview last week.

The suppliers range from Shell and Imperial to Suncor, Husky, Super Save and 7-11, but documents submitted to the commission show that only 7-11 has responded with details about how it sets the price per litre at the pumps.

It has requested the information not be released publicly and the utilities commission has complied, posting a redacted version of 7-11’s questionnaire response on its website.

The other suppliers offered almost identical reasons for withholding profit margin data, with Husky’s submission citing “commercially sensitive information” that is “not shared publicly or between refiners.”

As the price of a litre of regular gasoline climbed above $1.70 in mid-May, Premier John Horgan ordered the probe, saying that gas and diesel price increases were “alarming, increasingly out of line with the rest of Canada, and people in B.C. deserve answers.”

The inquiry timetable calls for the release of the second phase of the utilities commission consultant report today, followed by up to four days of oral submissions, where panel members can question industry representatives, including gas and diesel suppliers.

Bruce Ralston, minister of jobs, trade and technology, said in a statement that he’s disappointed with the companies that refused to provide the information and urged them to co-operate.

“People deserve to know why the price of gasoline in B.C. has seen such wild swings,” Ralston said.

But Morton said he’s not surprised that most of the companies withheld the information.

The utilities commission has established procedures for dealing with confidential information, including commercial information around prices that would harm the company if released, but it typically works with gas and electric utilities.

“Many of the participants aren’t as familiar with our approach to confidentiality so we understand there may be some apprehension around it,” Morton said.

If the organizations can show they would experience harm because a competitive price became public, then the utilities commission would typically honour that, he said.

“If there’s information critical to the inquiry of that nature, then the panel would review that information and we would make a decision but we wouldn’t make a reference to any of those numbers in the decision.”

The commission generally tries to avoid confidential information in its proceedings because it means decisions may have to be redacted, which it doesn’t consider to be “the best outcome,” Morton said.

Morton, who is on the inquiry panel, said they are in the process of reviewing the submissions and may determine that they don’t actually need specific numbers to answer the inquiry’s questions of why B.C.’s gas prices are different from the rest of the country and why the prices swing.

If the panel determines the figures are vital to the inquiry, and the companies still refuse to share them, the commission can apply through the B.C.Supreme Court for access.

That would set back the inquiry’s timeline but it remains on schedule so far, Morton said.

When the commission unveiled the process for the inquiry in May, the utilities commission said it would explore factors potentially affecting prices in B.C. since 2015, including competition and the amount of fuel in storage.

It is also expected to examine mechanisms that could be used to moderate price fluctuations and increases.

The three-person inquiry panel must submit its final report by Aug. 30.


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Oil companies may be called to testify under B.C.’s gas price probe

British Columbia’s independent energy regulator will have the power to call oil company representatives as witnesses into an investigation of high gasoline prices in the province.

Premier John Horgan has tasked the B.C. Utilities Commission to examine the market factors that affect wholesale and retail gas prices, and he wants a report by Aug. 30.

Gas prices hovering around $1.70 per litre in the Metro Vancouver area have been the highest in Canada for several months.

Horgan says he’s given the utilities commission broad terms of reference to conduct a fair and transparent investigation that would include concerns about competition and why recent gas refining margins for Vancouver have been more than double the Canadian average.

Liberal Leader Andrew Wilkinson has been calling on the New Democrats to reduce provincial gas taxes and has applied to participate in the investigation as an intervener.

Horgan says in a statement the terms of reference give the utilities commission the reach to investigate price fixing and gouging and to make recommendations.