Keshni Nand, Registrar
BC Utilities Commission
via email: Registrar@bcuc.com
cc: FPTA Program info@gaspricesbc.ca
cc: BCUC Chair & CEO Mark.Jaccard@bcuc.com
cc: Patrick Weiler MP patrick.weiler@parl.gc.ca
Dear Keshni,
Re: FPTA and Sea to Sky fuel prices
I am writing to formally request that the BC Utilities Commission (BCUC) prioritize monitoring and examination of fuel prices in the Sea to Sky region from Squamish to Mt. Currie. In 2020-2021, the BCUC analyzed and reported on fuel pricing in the Sea to Sky under the Fuel Price Transparency Act and in response to public queries. We understand that the BCUC observed:
- the Sea to Sky region functioned as a single, integrated market with Metro Vancouver
- fuel prices in Squamish were less responsive to changes in wholesale prices than Vancouver
- retail margins were greater in places with less competition, such as Squamish and Whistler.
Given this established evidence base, the Sea to Sky area represents a unique case where:
- there is a good understanding of the past market structure
- recent fuel price volatility has coincided with fuel prices in the Sea to Sky not aligning with those in the Lower Mainland
- the region’s isolation and reliance on motor fuel heightens the impacts of the current global fuel market volatility
- there is currently discussion within government of a motor fuel tax to support regional transit.
Given that the region has previously been found to operate as part of a larger market with Metro Vancouver, where an existing TransLink motor fuel tax applies, updated clarity around market assumptions and margins is critical to understanding the impacts a new motor fuel tax may have on fuel prices in the Sea to Sky.
I recognize the need for the Commission to focus regulatory resources where there is the greatest public interest, and submit that the public interest in fuel prices in the region has only increased since the previous analysis.
Respectfully,
Jeremy Valeriote, MLA
West Vancouver – Sea to Sky