The difference in the price of gas between Alberto and B.C. it is always quite surprising, but it has become completely, stratospheric, disproportionately high in the last few weeks.
Last Thursday, Edmontonians paid 84.9 cents per liter, while drivers in the neighboring capital of Victoria paid 137.9 cents. This is 53 cents, and Victoria's price is 63 percent higher than in Edmonton. According to Dan McTeague, senior oil analyst at GasBuddy.com, this is a disproportion between two big Canadian cities.
If Enterprise Edmontonian filled a 63,500-liter B-Train with petrol at retail prices, the bank gross salary of more than $ 30,000 could simply be transported to the coast. Drive 12 hours from Edmonton to Vancouver with a 378-liter sliding tank on the back of your truck and the value of the gas inside will magically jump for $ 148.
Below are some reasons why this is happening (and why this is not necessary because B.C. does not want to build oil pipelines).
For starters, taxes are much higher in B.C.
Taxes are always the most important factor in discussing gas prices in Canada. This is a unique reason why US gas prices seem so senselessly cheap for Canadians. Even in high taxation countries like California, charging is almost always cheaper than the cheapest corners of Canada, such as Saskatchewan. Edmontonians pay 10 cents per liter of federal excise duty, 5 percent GST and 6.73 cents per liter of carbon tax. In Vancouver, drivers pay a carbon tax of 7.78 cents per liter, 17 cents per liter for a public transport tax, 8.5 cents of additional taxes to the state of the country, plus a federal tax of GST and 10 cents per liter. Combine everything together and when Vancouver charges its 43-liter Prius, they pay more than $ 20 in provincial, federal and municipal taxes. The same supplement in Edmonton could have less than $ 10 of taxes.
The coastline B. has a consistent problem with sending enough fuel
Remove all taxes, but there is still a big difference between the wholesale price for petrol in B.C. and Alberta. At the latest prices of Petro Canada, without tax, the non-markup liter of gas costs 56.3 cents to Edmonton, 69.2 cents to Vancouver and (the highest in Canada) 70.8 cents to Nanaimo. This is mainly because in these days it is extremely difficult to keep the coastal coast. supplied with enough gasoline. The pre-Expo 86 Vancouver region had 1.26 million people and four oil refineries. Now, by the type of closures in the 1990s, Metro Vancouver has 2.5 million people and one oil refinery; a relatively small Burnaby refinery that draws up 50,000 barrels of fuel a day. (By comparison, the Irving Oil refinery in New Brunswick produces 320,000 barrels per day.) The Burnaby refinery is not sufficient to meet the increasing demand for fuel on Vancouver Island and the Lower Land, so the rest of the gas and diesel fuel comes from two places: via the Pipeline Trans Mountain from Edmonton or by sea from abroad. And because the pipeline is full, the only thing that stops the west coast is to have a fuel so that it keeps its gas prices high enough to attract enough oil tankers and gas barges from abroad. They are mostly sent across the border in the state of Washington, although McTeague says that many British Columbians are likely to burn a tank or two gas from Asia.
Pr. The petrol stations take a higher cut
The final factor that raises B.C. The price of gas is that now, Vancouver or Nanaimo gas stations has more money than its customers as a gas station in Edmonton. "Let's be honest, the petrol stations (in Edmonton) are struggling," McTeague said. Part of the reason is that Edmonton has a lot of gasoline. The city has three large refineries operating under capacity and have a direct connection to the cheapest oil on the continent. These are not typical conditions under which the gas station will feel safe to increase its profit margins. However, the retail label is never a particularly important factor in the price of gas. By filling this Prius, a typical Canadian gas station reaches only $ 5 and actually earns a lot of its revenue from cigarettes, energy drinks, logs and the like. So, B. Gas Jockey charges only a few extra cents than their Alberta, but all this is added. "Differences in the wholesale price are due to the issue of supply, differences in tax rates and differences in retail margins; These things can be put together, and this gap can become quite large, "said Jason Parent, vice president for consulting with the Canadian Oil Analysis Company Kent Group.
The new gas pipeline may not improve this
The document of the National Energy Commission for 2016, which approved the expansion of the Trans Mountain gas pipeline, was the hint that Trans Mountain, when the project is completed, was able to start shipping oceans of additional gas and diesel fuel to the west coast. Currently, the existing Trans-shore gas pipeline mostly dilutes the bitumen, while delivering up to one third of the demand for refined low-land fuel. The Trans Mountain Expansion would exist almost exclusively for sending diluted bitumen for export, while the existing Trans Gas pipeline would become "Line 1", a gas pipeline for the shipping of "light crude oil", a category involving petrol and diesel. "Trans Mountain said it did not intend to carry significant quantities of heavy crude oil on line 1," the report of the National Energy Commission said. This could mean that Line 1 could suddenly meet all of the fuel needs for the coastline, which would significantly reduce their price gap. Or, Trans Mountain could fill line 1 with a series of upgraded lightweight raw materials that will not do anything to get more gasoline in Victoria and Vancouver. The short answer is that the additional pipeline capacity from Alberta could actually lower B.C. gas prices, and is actually the most effective way of doing this (definitely more effective than a bunny scheme for building more refineries). However, there is no guarantee that this will happen. "I think it's unlikely that there will be much (at retail prices) at all," said Andrew Leach, energy economist at the University of Alberta.
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