There's definitely a lot of gouging going on, no question. In addition to carbon taxes and other fuel taxes, I was reading that refiner margins and retailer mark-ups are both at all-time highs. Everyone who stands to make a buck is jumping onto the bandwagon.
Having said that, the lack of refining capacity here in BC is a real issue. We are currently shipping Alberta oil to Washington state refineries, who sell refined fuels back to us at a mark-up. These imports may only account 10% of our gas, but that 10% is critical for meeting higher demand during the warmer months. Gas companies know they have a captive market, and set their prices accordingly.
Despite common belief, there is no shortage of capacity on the existing TM pipeline. In fact, only about half of the crude oil we send to the US returns to us in the form of refined products. The rest is either sold on the US market or shipped overseas.
The Vancouver area used to have three refineries to supply our needs, but two were shut down after the Trans Mountain pipeline was built. This meant that we became reliant on Alberta and Washington state refineries for our supply of gas.
The proposed pipeline expansion is primarily for shipping diluted bitumen to Asia. Any excess capacity will continue to supply US refineries, who will continue to sell their gas back to us at a mark-up. No additional gas will be refined in BC unless we expand our refining capacity.
If Alberta could ship more refined product to BC, then why aren't they doing so already? Instead of shipping crude oil to WA state to be refined, they could be using that capacity to send refined fuel directly to BC. There are two possible answers to that question: 1.) Their refineries are already at 100% capacity, or 2.) It's more profitable to maintain the status quo. Which do you think is more likely?
on Thursday afternoon.
∞ to 0.5 
GFS
