Metro Vancouver has the highest gas prices in North America and with prices forecast to remain at record-high levels, experts are warning residents can expect to start paying more for many things.
Increased transportation and delivery costs could inevitably be passed on to consumers as the price of gas impacts the price of doing business.
Kris Sims, with the Canadian Taxpayer Federation, told Global News B.C. drivers pay about 72 or 73 cents a litre in taxes at the pump.
“So we can break that down,” she said. “The big one is the TransLink tax, in Metro Vancouver, that is 18.5 cents per litre. The provincial excise tax is 8.5 cents, the first carbon tax in B.C. is 10 cents a litre right now, the second carbon tax in B.C. is around 17 cents a litre.
“The federal sales tax, which is added after all of the taxes, is around 8.2 cents a litre — that goes up and down based on the pump price. And finally, the federal excise tax is 10 cents a litre.”
She said B.C. has the most expensive gas in price and taxes in North America.
But it’s not just drivers taking kids to school and running errands.
The cost of diesel is also going up and that is what fuels the trucking industry.
“Trucks bring us everything we eat and use so guess what? Our price of stuff is going to go up, too,” Sims added.
Bridgitte Anderson, president and CEO of the Greater Vancouver Board of Trade, said they have heard from all types of businesses struggling to make ends meet.
“Businesses and individuals are facing really steep costs,” she said, adding challenges have been found due to supply chain issues, debt from the pandemic and cost of doing business.
“I think we all need to remember that businesses are made up of people,” Anderson said. “And businesses can only take on more costs at a certain amount and so, at some point, those costs are going to be passed on to consumers.
“Whether it is the costs of transportation of goods, or whether it’s the transportation of food, everything is going up right now and so those costs have to be passed on because businesses just can’t take on any more additional debt or costs at this time.”
She said it’s important for consumers to remember there are a lot of issues happening at once that are driving up costs.
It is not only the Russian invasion of Ukraine, but the high taxes in B.C. also play a factor.
Canada’s carbon price is also set to increase on April 1.
The price increase is part of a broader plan by the federal government to raise the price by $10 per tonne each year until it reaches $50 per tonne.
Sims said this will translate to about one cent a litre more in taxes at the pump for the average consumer.
The B.C. government is vowing to take action against record-breaking gas prices, but says freezing carbon tax increases or capping gas prices aren’t on the table.
Premier John Horgan took questions on the soaring price at the pumps at a press conference Thursday.
He said they will continue to monitor the situation and will make sure companies are not gouging consumers when filling up their vehicles.
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