B.C. introduces bill to force companies to hand over gas price data
Credit to Author: Rob Shaw| Date: Mon, 18 Nov 2019 22:34:12 +0000
VICTORIA – Oil and gas companies will be forced to hand over sensitive data on fuel imports, supply and gasoline pricing, under proposed new legislation introduced at the legislature Monday.
The Fuel Transparency Act will help in “pulling back the curtain” on sudden unexplained hikes to gasoline prices, which have occurred several times in the past year, said Trade Minister Bruce Ralston.
“This legislation brings us greater transparency at the gas pumps and sends a message to the oil and gas companies that the days of setting your gas prices in secrecy are coming to an end,” he said.
The government hopes that forcing oil and gas companies to provide pricing data might make them less eager to abruptly hike the price of gasoline by as much as 10 cents overnight to hit prices in the Lower Mainland that are among the highest in Canada, like has occurred in the past year. However, experts say the move is unlikely to reduce gasoline prices.
Ralston pointed to two recent investigations by the B.C. Utilities Commission that found an unexplained 10 to 13 cents per litre additional cost on gasoline at B.C. retail pumps, which is costing motorists an additional $490 million a year.
Ralston has called this gouging by oil and gas companies, though the commission stopped short of using such terminology and instead pointed to a near-monopoly by approximately five companies in B.C. that control almost all the gasoline supply and retail outlets, which reduces competitive pricing.
The commission also found that B.C. gas prices are set by the most expensive price of gas coming into the province — a five per cent supply from Seattle.
Ralston’s new legislation would require oil and gas companies to hand over their data to the independent B.C. Utilities Commission in a regular timeline, to be decided later by cabinet.
The goal, said Ralston, is to begin collecting a standard set of data that will allow government to properly evaluate future policy measures to ensure gas prices are fair at the pump.
Most of that data will be made public, Ralston said. However, some proprietary or sensitive corporate data might also be kept confidential.
The proposed legislation, if passed, would also allow for inspections, document seizures and penalties of up to $1 million by companies and officials who fail to comply with providing documents.