“As a region, Vancouver’s gas price woes are due in no small part to a chronic fuel supply shortage and the continent’s 2nd highest fuel taxes, which combined, put drivers at a distinct disadvantage compared to other cities across Canada and the U.S.,” said Dan McTeague, petroleum analyst with GasBuddy.
The longer than expected maintenance shut down of the Parkland refinery in Burnaby, which meets about 25% of Vancouver’s needs, has brought into sharp focus the city’s acute dependence on more expensive alternative fuel sources from Washington State refineries as the existing Trans Mountain Pipeline is at capacity and can deliver no more fuel from Edmonton refineries.
“Given next week’s additional 1.22 cents a litre increase in British Columbia’s carbon taxes, the nationally mandated switchover to summer blended fuel in the first days of April and reports that two refineries in Washington state will be entering into their own spring turnaround for maintenance, a perfect storm is emerging for Vancouver motorists at the pumps with prices reaching and breaching the 155.9 cent a litre record by week’s end.
“With no immediate solutions a hand, it is now likely that Vancouver will see many occasions this summer where gas prices will break through the $1.60 a litre threshold and placing summer 2018 pump prices at their highest ever. The growing demand for fuel in one of Canada’s fastest developing areas has outpaced any increase in supply, creating a volatile environment for fuel prices with few near-term alternatives to provide relief. Since no refinery can be built overnight and Pacific Northwest refiners are already committed to supplying their own growing U.S. base of customers, Vancouver’s best hopes for long-term relief from fuel shortages rest with the fate of the approved twinning of the Kinder Morgan Trans Mountain Pipeline.
Approved in May 2016, the existing multipurpose pipeline with a capacity of 295,000 barrels a day would be complemented by a 600,000 barrel a day twin line devoted strictly to oil from Alberta’s oil sands. Once complete, the current line would have greater space and upgraded to allow delivery of more fuels from Edmonton’s massive refinery hub, directly to Vancouver.
“On a day like today when Edmonton wholesale prices are 23 cents a litre less than Vancouver’s, even with pipeline tolls, the savings to Vancouver’s drivers would be enormous and reduce a volatility that is costing Vancouver dearly.”
Compared to this time last year, drivers in the Lower mainland and Vancouver are paying over 22 cents a litre more than last year and with an average use of 45 litres per week, adding a possible $500 to the cost of transportation for Vancouver motorists.
About GasBuddy
GasBuddy is a smartphone app connecting drivers with their Perfect Pit Stop. GasBuddy is the leader in crowdsourced information to help drivers find the best gas prices, closest stations, friendliest service, cleanest restrooms, tastiest coffee and much more. GasBuddy is the leading source for the most accurate, real-time fuel prices at more than 140,000 gas stations in the U.S., Canada and Australia. The Company’s B2B Retailer Software-as-a-Service (SaaS), known as GasBuddy Business Pages, provides Fuel Marketers and Retailers their best opportunity to maintain their station information, manage their brand, and promote to their target consumer audience. For more information, visit www.gasbuddy.com or email [email protected].