Driving school

‘Everything is going up right now’: High gas costs in British Columbia are driving up consumer costs

Metro Vancouver has the highest gas prices in North America and with prices expected to remain at record highs, experts warn residents can expect to pay more for many things.

Increased transportation and delivery costs could inevitably be passed on to consumers, as the price of gasoline affects the price of business.

Kris Sims of the Canadian Taxpayers Federation told Global News that drivers in British Columbia pay about 72 or 73 cents a liter in taxes at the pump.

“So we can break that down,” she said. “The big one is the TransLink tax, in Metro Vancouver, which is 18.5 cents per litre. The provincial excise tax is 8.5 cents, the first carbon tax in British Columbia is currently 10 cents per litre, the second carbon tax in British Columbia is approximately 17 cents per litre.

“Federal sales tax, which is added after all taxes, is about 8.2 cents per liter – which goes up and down depending on the price at the pump. And finally, the federal excise tax is 10 cents per litre.

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She said BC has the most expensive gas in price and tax in North America.

But it’s not just drivers who take children to school and run errands.

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BC government rules out carbon tax freeze or price cap amid record gas prices

BC government rules out carbon tax freeze or price cap amid record gas prices

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BC government rules out carbon tax freeze or price cap amid record gas prices

The cost of diesel is also rising and that is what fuels the trucking industry.

“The trucks bring us everything we eat and use, so guess what? The price of our products will also increase,” added Sims.

Bridgitte Anderson, president and CEO of the Greater Vancouver Board of Trade, said she’s heard from all types of businesses struggling to make ends meet.

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“Businesses and individuals are facing very high costs,” she said, adding that problems have been encountered due to supply chain problems, debt due to the pandemic and the cost of services. business.

“I think we all have to remember that businesses are made up of people,” Anderson said. “And businesses can only bear more costs above a certain amount and so at some point those costs are going to be passed on to consumers.

“Whether it is the costs of transporting goods or transporting food, everything is going up at the moment and therefore these costs must be passed on, because companies simply cannot bear any more debt or additional costs at this stage. . time.”

She said it’s important for consumers to remember that there are a lot of issues happening at the same time that drive up costs.

It’s not just the Russian invasion of Ukraine, but high taxes in British Columbia also play a role.

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The price of carbon in Canada is also expected to increase on April 1.

The price increase is part of a larger plan by the federal government to raise the price by $10 per tonne each year until it reaches $50 per tonne.

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Sims said that would translate to about a penny a liter more in taxes at the pump for the average consumer.

The BC government promises to take action against record gasoline prices, but says freezing carbon tax increases or capping gasoline prices are not on the table.

Premier John Horgan answered questions about soaring pump prices at a news conference Thursday.

He said they would continue to monitor the situation and make sure companies are not abusing consumers when filling up their vehicles.

© 2022 Global News, a division of Corus Entertainment Inc.