Photo: The Canadian Press

An industry expert says a public inquiry into B.C.’s record-breaking gasoline prices may increase the public’s understanding of a murky market but the provincial government’s options for response are limited.

Michael Ervin, senior vice-president with consulting firm Kent Group that specializes in the downstream petroleum industry, said he also doesn’t expect the inquiry to uncover any bombshell revelations.

The reason prices at the pump are so much higher in Vancouver and other B.C. cities than comparable jurisdictions all funnels down to supply and demand, he said.

“It really comes down to very tight supply relative to pretty strong demand in the Lower Mainland and B.C. in general,” Ervin said in a phone interview.

Premier John Horgan ordered the inquiry in May when prices at the pump reached $1.70 a litre, saying gas and diesel price increases were “alarming, increasingly out of line with the rest of Canada, and people in B.C. deserve answers.”

He tasked the British Columbia Utilities Commission with overseeing the inquiry. A three-member panel chaired by CEO David Morton is set to begin its oral proceedings on Wednesday in Vancouver.

But the inquiry has already encountered some hurdles.

The utilities commission beefed up its confidentiality terms last week after six of seven fuel companies refused to share their retail margins, saying it would compromise their positions in a competitive market.

The new terms grant advanced approval of confidential status to those who submit information that they identify as commercially or competitively sensitive under the new terms, rather than granting the status after the content is reviewed and deemed eligible.

“We felt that under the circumstances it would not be unreasonable to provide them with that assurance,” Morton said.