The price of gas in British Columbia will continue pushing to record highs as a new carbon tax and a seasonal change exacerbate a âchronic shortage,â according to a leading expert.
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analyst Dan McTeague is calling for gas prices in Metro Vancouver to top the current $1.57 per litre record, reaching $1.61 per litre near the end of next week.
Starting Sunday, the first of four annual increases to the provinceâs carbon tax will add 1.22 cents to the cost of a litre of gas. B.C. Premier John Horgan said he doesnât believe drivers will âbegrudge that penny,â knowing itâs been earmarked to fund green initiatives.
McTeague said that hike alone will push prices to as much as $1.56 per litre.
âThe pain isnât over yet,â he told CTV Vancouver on Friday. âIn about seven to eight days, we transition from winter to summer gasoline. That will add four cents a litre.â
According to McTeague, gasoline supply in the region continues to be choked by a lack of pipeline capacity and a refinery that is shut down for maintenance.
âThat is creating a chronic shortage,â he said. âThe only solution left really for Vancouver (is) it has to wake up. It has to recognize the only way to get more gasoline down there is the Trans Mountain pipeline expansion.â
Ottawa approved Kinder Morganâs $7.4-billion pipeline expansion in 2016, but the project faces significant opposition in B.C. The provincial government has raised concerns about environmental safety and economic impact.
âThose who donât like high prices shouldnât be opposing Kinder Morgan,â McTeague said. âThatâs really the only solution at hand for Vancouver.â
Thousands of anti-pipeline demonstrators have rallied near Kinder Morganâs Trans Mountain work site in Burnaby in recent months.
Meanwhile, tempers are flaring over Horganâs apparent lack of empathy for those forced to pay more to fill up.
âGas prices are some of the most expensive in the world, much less anywhere else in the country,â said one driver. âThat's completely ridiculous.â
With a report from CTV Vancouverâs Ben Miljure