Today’s fuel prices are a pain in the gas tank.
But there doesn’t seem to be a lot we can do about it here in B.C. even as prices hit $1.55 a litre — and they could go even higher.
Let’s face it, the cost of crude oil accounts for only about half the price of gas.
Our gas woes are the result of a combination of factors, including reduced refinery capability, so with less fuel getting through, we face a price squeeze at the pump, and when it’s refined in the U.S., we pay a premium because of the low dollar.
It also costs to deliver gas to the pump, so that has to be factored in, while federal and provincial taxes account for about 30% of the price, or about 50 cents a litre.
With the recent 1.2 cent-per-litre carbon tax hike added, many people are complaining about high gas prices. And don’t even think about the summer, when higher consumption typically leads to price hikes.
With this price squeeze hitting our pocketbooks, many people argue that British Columbians in particular are being unfairly squeezed because we pay more than other Canadians, and, of course, a lot more than Americans, who pay lower fuel taxes and have more refinery capacity.
Some people suspect a conspiracy that big oil is punishing B.C. for pipeline protests while others argue the Trans Mountain pipeline needs to be built because the gas isn’t just destined for China but for local gas pumps, as well.
The fact is we can do something about these extra dollars being siphoned from our pocketbooks, but it won’t be easy as just about everything we buy has fuel costs embedded.
We can drive less, or when driving is a necessity, purchase smaller cars, take transit more often and change our driving habits by combining trips, accelerating gently, avoiding idling, heavy braking and high speeds (a technique that can cut consumption by 20%).
It may sound overly simple but fighting so-called big oil and these inevitable gas price hikes starts with taking personal responsibility on the road.
