Gas prices are displayed as a motorist prepares to pump gas at a station in North Vancouver, B.C., Tuesday, May 10, 2011. Shares in Parkland Fuel Corp. rose by as much as 5.5 per cent after Canada’s largest independent fuel marketer reported strong fourth-quarter results driven by higher refining profit margins. The Calgary-based company that sells fuel through brands including FasGas, Esso and Chevron is reporting net earnings of $77 million in the last three months of 2018, up from $49 million in the year-earlier period. THE CANADIAN PRESS/Jonathan Hayward

Gas price inquiry questions Trans Mountain capacity, company denies collusion

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

ALSO READ: Companies to appear before panel today in public inquiry into B.C. gas prices

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

Amy Smart, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

‘There are angels out there’ – Okanagan Falls resident reunited with those who saved his life

Heroic efforts of both neighbours and first responders kept Steven St. Germain alive on August 25

Penticton shelter meeting current need, accepting donations of blankets, clothing

The shelter offers 30 beds year-round and 25 more temporarily over the winter

Okanagan Similkameen could have a sister city in the south of France

Regional District of Okanagan Similkameen considering agreement with wine region in southern France

Nature Wise: Thoughts in parting

Bob Handfield passes Nature Wise column on

Bob Ross is coming to Penticton in 2020

32 of the late painter and TV celebrity’s works will be on display at the Penticton Art Gallery

VIDEO: Boys help rescue Cariboo bear cub

The cub, weighing just 24lbs, has been taken to wildlife sanctuary in Northwest B.C. for the winter

Healing with honesty: Justice served 40 years later

Revelstoke senior gets house arrest for sexually assaulting stepdaughter

WorkSafe BC to investigate explosion at Princeton facility

Explosion at Envirogreen waste reclamation plant occurred Nov. 27

Doors open to Vernon’s first refill store

Vernon’s Refill Store may be answer to plastics problem

Okanagan RCMP not toying around when it comes to impaired drivers

Saturday, Dec. 7 is National Impaired Driving Enforcement Day

‘Things haven’t changed enough:’ Ecole Polytechnique anniversary prompts reflection

Fourteen women were fatally shot by a gunman at the Montreal school on Dec. 6, 1989

Bear raids freezer, gorges on Island family’s Christmas baking

Hungry bruin virtually ignored meat and fish, focused, instead, on the sweets

Crown delves into Sagmoen’s history with North Okanagan sex workers

Decision on validity of police search warrant will be made on Monday, Dec. 9

Kelowna man attempts to steal bait bike from RCMP parking lot

38-year-old Brian Richard Harbison is facing several charges

Most Read