A new report suggests that lower gas prices in Metro Vancouver may be due, in part, to the TMX pipeline.
On average, gas prices are about 30 cents a litre cheaper than last summer.
A report from the CD Howe Institute suggests the price drop has a lot to do with more supply coming through the pipeline, rather than by the more expensive option – rail.
According to the report, a rough estimate indicates the premium we have paid on gasoline costs the average Metro Vancouver family $1,200 a year.
When the newly expanded TMX pipeline came online in May, prices seemed to settle as more refined product could be shipped at a lower cost, according to the report.
B.C. Premier David Eby has his doubts, however, saying a Utilities Commission Report five years ago found an “unexplained” 13-cent-per-litre differential charged on B.C. gas.
“I think many British Columbians would be surprised to hear that they are enjoying low gas prices because of the Transmountain Pipeline because the pump prices in B.C. have been very significant,” he said.
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According to gas tracking websites, gasoline wholesale prices should drop significantly in the fall but it is unclear whether that translates into lower pump prices.
“Canada is the largest G7 Nation in terms of geographic area and the smallest in terms of population,” the report states.
“At a broad level, we should have a formal national transportation infrastructure strategy. Compared to other developed countries Canada is alone in not having one.”
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