Kamloops city councillors say they’re disappointed after receiving what they describe as a non-answer from the province regarding the city’s long-standing concerns over fuel prices.
Earlier this year, council unanimously voted to ask the provincial government why gas prices in Kamloops routinely sit above those in neighbouring communities such as Vernon, Kelowna and Penticton.
In a March 11 letter to Energy and Climate Solutions Minister Adrian Dix, council questioned why drivers in Kamloops often pay significantly more for fuel despite the city being home to a major fuel distribution terminal. The letter also asked whether the province was considering stronger oversight, reporting requirements or consumer protections related to fuel pricing.
In a response dated April 10, Dix said the province does not regulate retail gasoline or diesel prices, instead relying on market competition and oversight provided by the BC Utilities Commission through the Fuel Price Transparency Act.
While Dix acknowledged data showing Kamloops has experienced higher fuel prices in recent years, he noted a 2024 BCUC report found no evidence that proximity to fuel distribution infrastructure should necessarily translate into lower pump prices. He also pointed to retail margins as the primary factor behind price differences between Kamloops and other Interior communities.
The minister suggested council contact the BCUC directly for further information on fuel market conditions.
For Councillor Bill Sarai, who originally raised the issue at council in January, the response was frustrating.
“It was kind of disappointing,” Sarai told Radio NL. “We thought it would be an eye-opener for him saying, ‘What’s going on here?’ We’ve been dealing with this for a number of years.”
Sarai said the concern goes beyond occasional price fluctuations.
“It’s disheartening to know that you can travel 20 or 30 minutes out of Kamloops and find lower gas prices,” he said. “When you’re seeing drastic gas prices lower than Kamloops — never higher — wherever we travel in the Interior, that to me is a red flag.”
The councillor said one of the examples that prompted council’s inquiry came while travelling to Peachland, where he noticed fuel prices roughly 20 cents per litre lower than those in Kamloops despite fuel being transported through the same regional supply network.
While Dix’s letter pointed to market forces, Sarai argues the province should be taking a more active role in determining why Kamloops consistently appears to be an outlier.
“It’s on him to give us answers,” Sarai said of the minister. “We shouldn’t be having to chase around utility commissions that they’ve established to find answers.”
Council has since directed staff to contact the BC Utilities Commission and seek further information about pricing trends in Kamloops. Sarai said any response received from the commission will also be forwarded to the province.
The issue has gained traction among residents over the past year, with Sarai saying more people are noticing the discrepancy as they travel throughout B.C.
“People in Kamloops have noticed abundantly clear that gas prices near Kamloops, when they’re travelling, are a lot lower than Kamloops,” he said. “That’s why I took these steps to find the answers.”
For now, however, the answer from the province appears to be that Kamloops’ higher prices are largely a matter of market competition — an explanation that has done little to satisfy council’s concerns.
