Forecast calls for drop in Metro Vancouver's overheated gas prices and here's when
The price at the pump reached a jaw-dropping high at some Metro Vancouver gas stations on Tuesday, and while we might be forced to pay it to fill up, we sure don’t like it.
Prices as high as $2.18 per litre were spotted in Surrey as the price throughout the region this week wavers between $2.15 and $2.20. “Cheap” gas can be found in Abbotsford, but you’ll still be paying about $1.90 per litre, which isn’t exactly a deal compared to Alberta, where it’s currently about $1.30.
We asked the experts why gas station prices have been so high lately and when we might see a downturn, and we’re happy to report there is some hope ahead for drivers.
BC weather is a price hike this time of year
FabrikaSimf/Shutterstock
According to the experts at Kalibrate, an organization that analyzes petroleum and fuel prices, this is actually pretty typical this time of year and we will see it continue until about the end of June, apparently.
In the spring, fuel prices typically rise as demand picks up with many already heading out on road trips or planning to for the upcoming May long weekend, Kalibrate experts told Daily Hive in a previous interview.
Additionally, refineries are performing maintenance at this time of year, which impacts supply.
And that supply is getting pricier.
A spokesperson for Kalibrate added that in North America, refineries switch to “summer-blended fuel.” While it is a more expensive blend, it evaporates less quickly in warmer weather.
It also depends on the market.
“This spring, pump prices have also risen as crude oil prices have climbed since the start of the year,” Kalibrate added. “Increased geopolitical tensions abroad and ongoing crude oil production limits by OPEC+ have contributed to rising crude oil prices this year.”
Oil pipeline (Kodda/Shutterstock)
But while prices typically rise, Metro Vancouver didn’t see prices like this 10 years ago or even last year, when they were about $1.80 per litre of regular.
Many point to the increase in taxes — including the carbon tax, which added an additional 3 cents per litre for gasoline — as the reason.
However, the carbon tax isn’t the biggest chunk the government gets from your gas tank. If you fill up for $2 a litre, an estimated 64 cents of that goes to the government, and the TransLink tax is the highest.
Metro Vancouver gas tax breakdown
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Carbon tax: 17.61¢ for gas, 20.74¢ for diesel per litre
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TransLink tax: 18.50¢ per litre
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Federal excise tax: 10¢ per litre.Â
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B.C. Transportation Financing Authority: 6.75¢ per litre
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BC general revenue: 1.75¢ per litre.Â
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GST: 9.9 cents
Going to Washington to get gas instead?
Cars line up at a Costco gas bar in Bellingham, Washington. (David Buzzard/Shutterstock)
If you were planning to skip the BC tax and head to the States, it’s important to note that it’s not a tax-free ride either, even if it’s not nearly as high.
“Compared to Washington, where total State and Federal taxes are $0.7122/gallon (US) according to the EIA. This equates to nearly 26 cents per litre in Canadian dollars.”
If you are heading to Washington, the price will be cheaper, converting to $1.50 per litre at the Bellingham Costco location, for instance, but it’s still not as cheap as it was in March.
You can find out which gas stations are closest to the border here.
“Today’s national average is $3.65[/gallon], 12 cents more than a month ago and the same as a year ago,” an article on AAA’s website reads in part.
US gas prices per Washington’s AAA website. (gasprices.aaa.com)
Washington is actually one of the most expensive states to fill up in the US, alongside Oregon, Hawaii, and even Idaho.
“Domestic gas demand is pretty pokey at the moment, which is often the case in the runup to Memorial Day and the traditional start of summer driving season,” said Andrew Gross, AAA spokesperson. “The recent national average price of $3.67 could be the peak until hurricane season is well underway. But as always, the wildcard will be the cost of oil, so stay tuned.”
The Canadian Border Services Agency told Daily Hive in a previous interview that those who go to the States to get gasoline will not have to pay duty if they just fill up the tank; they still have to declare it or face a stiff penalty. Read more about the rules here.
Metro Vancouverites can also make a day of it with our guide to free and inexpensive things to do in Bellingham.
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