The British Columbia Utilities Commission is collecting pricing and profit-margin data from Sea to Sky fuel retailers amid concerns that drivers are paying as much as, or more than, Metro Vancouver drivers despite lower fuel taxes.
In an Oct. 21 letter responding to the Village of Pemberton, the commission said it had requested information from retail stations and local distributors across the region, including explanations for why their pump prices are higher than those in nearby markets.
The commission announced the data request on July 10, seeking information from Squamish to Mount Currie.
Pemberton Mayor Mike Richman wrote to the commission on Oct. 2 on behalf of council, supporting MLA Jeremy Valeriote’s call for renewed scrutiny of fuel prices along the corridor.
The Squamish Reporter reported on July 6 that Valeriote had requested renewed monitoring in a June 24 letter, citing concerns about disproportionately high pump prices and the implications of a potential regional fuel tax to support transit. “Village Council continues to hear concerns about fuel affordability for residents and businesses,” Richman wrote.
Council is particularly concerned about periods when corridor prices match or exceed those in Metro Vancouver, even though consumers there pay higher fuel taxes. Richman said that pattern warrants further examination of retail margins, competition and other factors affecting prices.
His letter cited earlier BCUC analysis that, according to council, found the corridor operated as an integrated market with Metro Vancouver. It also identified Squamish fuel prices as less responsive to wholesale price changes than Vancouver prices, and retail margins as higher in communities with less competition, including Squamish and Whistler.
An updated analysis would help determine whether those earlier market findings still hold, Richman wrote.
For Pemberton residents, driving is often essential to reach jobs, health care, education and other services, while businesses face higher transportation and operating costs, the letter said.
In its response to Pemberton, the commission said it is seeking detailed information about fuel sales and margins, how local gasoline and diesel prices are set, and why prices exceed those in nearby markets.
Valeriote had also asked whether the corridor had become distinct from the larger Vancouver market. Updated information could help assess how a potential motor fuel tax to support regional transit might affect local pump prices, the commission said.
The BCUC emphasized that its role under the Fuel Price Transparency Act is to collect data and promote transparency and confidence in market competition.
“Please note, we do not regulate fuel prices,” registrar Keshni Nand wrote.
The commission said its investigations to date suggest B.C.’s retail fuel market is functioning effectively. However, if it identifies Sea to Sky retail margins inconsistent with expected market behaviour, it will require further reporting and could take additional steps, including reporting its findings to the provincial government.
