BC will force oil and gas companies in British Columbia to reveal to consumers how gas prices are set. The new changes are a result of new legislation that was introduced on Monday, Nov. 18, 2019.
The fuel price transparency act will allow the B.C. Utilities Commission (BCUC) to collect information from oil and gas companies on the market conditions involved in setting gasoline prices.
This information will be made available to the public, as well as consumer and watchdog groups.
The act was developed in response to the BCUC investigation that found a lack of competition and substantial markups in the province’s gasoline market, including a 10- to 13-cent-per-litre premium being charged to drivers that industry was unable to explain during the BCUC inquiry. This unexplained premium results in British Columbians paying an extra $490 million every year.
This act will require companies to share data on refined fuel imports and exports, fuel volumes at refineries and terminals, as well as wholesale and retail prices. It also has safeguards in place to ensure that the information provided by the companies is complete, accurate and reported regularly.
“It’s incredibly frustrating to watch the price of gas shoot up for no reason, and British Columbians are tired of feeling ripped off whenever they fill up their vehicles,” said Bruce Ralston, Minister of Jobs, Trade and Technology. “This legislation sends a message to oil and gas companies: the days of setting your prices in total secrecy have come to an end.”
“By pulling back the curtain, these companies will be publicly accountable for unfair markups and cost increases that cannot be explained,” Ralston said. “It will also produce a common set of facts moving forward, allowing us to properly evaluate other policy measures to bring fairness to the price at the pump.”
About bloody time eh!