British Columbia residents are digging deeper in their pockets to pay for gas than our Edmonton counterparts.
Last Thursday, when the people of Edmonton were paying 84.9 cents a litre to fill up their vehicles, drivers here in BC were paying up to 137.9 cents.
That’s a difference of 53 cents.
The fact that BC residents are paying more for their gas isn’t surprising, take a look at how much gas prices have risen in Vancouver since 1995, but why do we pay so much?
Paying More For Gas
Why is there such a significant difference in cost? It has to do with taxes – a very important factor when determining gas prices.
In Vancouver, drivers pay more than $20 in provincial, federal and municipal taxes compared to Edmonton, where they could pay less than $10 in taxes.
Disregard taxes all together and there is still a significant difference between the wholesale price for gasoline in B.C. and Alberta.
According to Petro Canada, a litre of gas (without tax or a markup) costs 56.3 cents in Edmonton, 69.2 cents in Vancouver and 70.8 cents in Nanaimo, the highest in Canada.
The reason for this difference is because of how difficult it is to keep BC supplied with a sufficient amount of gasoline.
Let’s take a look back to before Expo 86 where there were four oil refineries. Compare that to today where there is only one oil refinery (in Burnaby) and add a much higher population to the mix and things get a little more pricey.
Edmonton on the other hand has three large oil refineries and is connected to some very cheap oil. There really isn’t a need for Edmonton to increase their gas prices.
Gas stations in BC also make a little more money off of their customers than in Edmonton. Although this isn’t a big factor in determining gas prices, the differences in supply and wholesale price, eventually adds up.
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