Image: Screenshot, City of Chilliwack / Councillor Bud Mercer has asked city staff to make contact with retail gas station owners about why gas prices are consistently so high in Chilliwack. His motion was passed by fellow councillors at Tuesday's meeting (Nov. 15).

By Mike Vanden Bosch

Gas price probe

Chilliwack City Council passes motion to probe high gas prices in Chilliwack compared to other Fraser Valley cities

Nov 16, 2022 | 9:48 AM

CHILLIWACK — Inquiring minds want to know why Chilliwack’s retail gas prices tend to be higher than Abbotsford or other portions of the Fraser Valley, despite Chilliwack being outside of the Metro Vancouver transit tax that tacks on an extra 13 cents to the cost of a liter of gas.

During the councillors’ reports portion of Tuesday’s meeting on November 15, Councillor Bud Mercer asked city staff to make contact with Chilliwack gas station owners as to why the city’s gas prices seem to be higher than the rest of the Fraser Valley.

An internet search conducted Wednesday morning revealed the cheapest gas in Chilliwack was $1.799 a litre at Kim’s Save & Gas (46909 Yale Road East), among other gas stations. The cheapest gas in Abbotsford, however, was $1.759 a litre at Super Save on Fraser Highway in Abbotsford. The cheapest gas in Surrey Wednesday morning was $1.819, according to GasBuddy.com.

Councillor Mercer expressed frustration at Chilliwack having to pay more for gas when its municipal counterparts to the west have a transit tax factored into the cost of its gas and don’t pay much higher retail prices.

“I’d like council support to ask staff to reach out to a delegation of gas station owners,” said Mercer, who was first elected to council in 2018. “I know what I’m about to say is normally the realm of the Competition Bureau of Canada, but I’m sure the citizens of Chilliwack would be interested in hearing if gas station owners, or a delegation of them, would appear before council. I know we’d all be interested to try trying to understand and comprehend the rationale that [our] gas prices are often similar or higher than communities to the west, like Surrey, when we’re not paying the GVRD tax and they are, but often our prices are higher than theirs.”

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Councillor Chris Kloot echoed Mercer’s sentiments and agreed that it’s an issue that deserves explanation.

“I certainly support this,” Kloot said in supporting Mercer’s motion. “I think we hear it over and over again how frustrating it is that the posted gas price per liter is higher than, as was mentioned by Councillor Mercer, areas to the west that participate in the 13-cent Translink tax. I know a couple years ago we had this conversation around the table. A letter was sent to the Competition Bureau; I don’t think anything ever happened. I think it’s timely, I’m happy to support it, [and] we’ll see if they take up the offer to see where they stand. We’ll wait for them to come before us.”

Councillor Jason Lum, who was recently reelected as the highest vote getter in October’s municipal elections, was equally supportive of Mercer’s motion and suggested getting the B.C. Utilities Commission (BCUC) involved.

“I’m wondering if there’s another party that could explain this,” Lum pondered. “That is the BCUC. They made recommendations in that report to the provincial government regarding potential regulation of gas prices. I’m not sure if there’s an association of retail gas station owners. A lot of them are just franchisees. It might be inviting the BCUC in to explain what their pilot project was all about and what they had intended to do and the information they gave back to the province and where it stands.”

Councillor Mercer said he recognized that gas stations owners wouldn’t be required to attend, but it would be helpful for him to understand what was happening behind the scenes.

“I know they don’t have to attend to explain, but I feel compelled representing … the citizens of Chilliwack. I’m sure our city would be interested in hearing the logic behind it. Maybe there’s a good answer, maybe there’s no good answer.”