Gas price inquiry questions Trans Mountain capacity, company denies collusion

VANCOUVER — One of the largest fuel companies in British Columbia says there’s no retail market more competitive than gasoline in Canada and denies any price setting between competitors.

Ian White, senior vice president of marketing and innovation for Parkland Fuel Corp., told a three-member panel leading a public inquiry into the province’s gas prices today that a price difference of a tenth of a cent per litre can be enough to lose customers.

Parkland Fuel operates gas stations under Chevron and other banners, supplies fuel to airlines and BC Ferries, and owns and operates one of B.C.’s only refineries in Burnaby.

White says while factors like clean washrooms and convenience stores can influence consumers, they simply won’t visit your gas station if you don’t have a competitive price.

Economist Henry Kahwaty, who was hired by Parkland, says that environment leads retailers into a race to the bottom until they reach unprofitable prices, at which point there is typically a price jump and the process repeats itself.

But he says controlling that process would require a significant level of co-ordination considering almost half of the gas stations in B.C. are run by independent dealers rather than companies.

“This is not evidence of collusion,” Kahwaty said.

The first of up to four days of oral hearings in the inquiry continue this afternoon in Vancouver.

Premier John Horgan called the public inquiry in May as prices at the pump reached a record-breaking $1.70 per litre.

At the time, the B.C. Liberals and Alberta government bought advertising blaming Horgan and linking his government’s resistance to the Trans Mountain pipeline expansion and taxes to the surging costs.

Jean-Denis Charlebois, chief economist for the National Energy Board, told the inquiry panel he can’t account for an independent report that contradicts its claim that the Trans Mountain pipeline is operating at capacity.

Charlebois told the three-member panel that in the first quarter of 2019, the Trans Mountain pipeline was operating at 98 per cent capacity.

The panel asked if he could shed light on a report by economists Robyn Allan and Marc Eliesen, the former president of the Insurance Corp. of B.C. and chief executive of BC Hydro, respectively.

Allan and Eliesen say their analysis found the Trans Mountain capacity is 400,000 barrels a day, falling to 300,000 barrels a day only if 20 per cent of the capacity is taken up by heavy oil. But it rarely reaches that threshold of heavy oil and Allan and Eliesen claim there were 97,000 barrels a day of capacity in the first quarter of 2019 that were not used.

Earlier today, Liberal Leader Andrew Wilkinson issued a statement criticizing the government for the inquiry’s short timeline and terms of reference that limit it from investigating government activity that affects gas prices.

“It is outrageous that an investigation into fuel costs would be barred from considering the impacts of fuel taxes, transit taxes, and the government’s opposition to increasing pipeline capacity,” Wilkinson says.

The inquiry will conclude with a final report by the panel due Aug. 30.

Just Posted

Woman killed in collision west of Rocky Mountain House

A 42-year-old woman is dead after a two-vehicle collision in Clearwater County… Continue reading

Rough camper “tree house” found hidden in Red Deer woods

“This took a bit of work,” says man who discovered it

Central Alberta has one less peacekeeper with death of Nobel Prize-winning vet

The late Wayne Coubrough and Wayne Bevis helped diffuse tensions in the Middle East

TC Energy applauds Nebraska court victory over opponents of Keystone XL pipeline

CALGARY — One of the last major hurdles for the Keystone XL… Continue reading

Tribunal rules Edmonton pharmacist harmed integrity of profession

EDMONTON — An Edmonton pharmacist has been found guilty of unprofessional conduct… Continue reading

WATCH: Trailer stolen from Red Deer deli

A Red Deer business has contacted police after a trailer was stolen… Continue reading

Your community calendar

Thursday The Red Deer and District Garden Club hosts its annual Flower… Continue reading

Alberta loses extra-innings thriller at men’s baseball nationals

Alberta came up just short in their second game at the Baseball… Continue reading

G7 leaders should step up own climate plans to help the Amazon, Greenpeace says

OTTAWA — Some Canadian environment groups are urging Prime Minister Justin Trudeau… Continue reading

Third-party buys billboard to promote Bernier’s anti-mass immigration stance

OTTAWA — Billboards with Maxime Bernier’s face and a slogan advocating against… Continue reading

Ottawa ready to pass law forcing CN to restore rusting Quebec Bridge

Ottawa says its ready to take ownership of the aging Quebec Bridge… Continue reading

TC Energy applauds Nebraska court victory over opponents of Keystone XL pipeline

CALGARY — One of the last major hurdles for the Keystone XL… Continue reading

‘Our bigger enemy’: Trump escalates attack on Fed chief

WASHINGTON — President Donald Trump launched a furious and highly personal attack… Continue reading

Ontario shipyard accuses feds of unfairly stacking deck in Davie’s favour

OTTAWA — An Ontario shipyard is accusing the federal government of trying… Continue reading

Most Read