March 29, 2002

Vancouver region gas prices to rise April 1 with new tax

Burnaby, B.C. – Tax on fuels sold in the Lower Mainland climbs above 30 cents per litre on April 1, when drivers begin paying an additional two cents per litre dedicated to TransLink. After April 1, the per litre breakdown of Lower Mainland fuel taxes will be as follows:

  • Federal Excise tax: 10.0 cents

  • Federal GST 4.5: cents
  • Provincial 6.0: cents
  • Regional (collected by the province, transferred to TransLink): 11.0 cents
  • Total: 31.5 cents

At these rates, Lower Mainland car and truck drivers will pay approximately $300 million annually to the federal government, $223 million to TransLink and $125 million to the province, for an annual total of nearly $650 million.

In fuel and parking sales taxes, motorists will contribute $233 million, or 39% of TransLink’s total budget for 2002. The amount TransLink has budgeted in 2002 for Vancouver region major road network funding (including Albion Ferry costs) is $26.8 million in operating costs and $7 million in road-
related debt service costs, for a total of $33.8 million, or 5.6% of TransLink’s total 2002 budget. TransLink has committed to spend, as a minimum, an amount equivalent to the two cent fuel tax increase – about $42 million annually – on road programs by 2003.

The federal government collects some $4.7 billion annually in fuel taxes from drivers across Canada, but spends very little on national highways and virtually nothing on urban transportation infrastructure. BCAA, together with CAA nationally, is active in pursuing federal funding for national highways and urban transportation, and supports TransLink, the provincial government and organizations such as the Federation of Canadian Municipalities in their efforts to secure federal transportation funding.

Connect with