VICTORIA - British Columbia is giving a one-time relief rebate to help drivers cope with the cost of rising fuel prices caused by Russia's invasion of Ukraine, Premier John Horgan announced Friday.
Horgan said the provincial government approached the Insurance Corporation of B.C. to provide drivers who have a basic auto insurance policy with a $110 rebate and commercial drivers with $165.
As a result of our work to fix ICBC, we're in a position to put money back in people’s pockets to help a little with these increased costs.
— John Horgan (@jjhorgan) March 25, 2022
While most ICBC customers will receive $110, commercial drivers will be eligible for $165.
📺 Watch live: As people face increased costs due to Russia's attack on Ukraine, we're providing some relief to British Columbians.https://t.co/USFaRIVr0Y
— John Horgan (@jjhorgan) March 25, 2022
“Today, if we go to fill up at the pumps, sometimes it feels like it’s a bit of a hold up," he told a news conference. "Prices are at unprecedented levels and those prices at the pump are a direct result of (Russian President) Vladimir Putin’s invasion of Ukraine.”
Horgan said the one-time payment is a better approach than cutting fuel taxes because the price will only increase again at the pumps.
He said the corporation is in a financial position to cover the cost of $395 million rebate. It is forecasting an annual net income of $1.9 billion for the 2021-22 fiscal year ending March 31.
In 2018, David Eby, who was then the minister in charge of the insurance corporation, compared the finances of the public auto insurer to a dumpster fire.
The NDP brought in legislation to prevent governments from to dipping into reserves at the corporation "to pad their budgets," Horgan said Friday.
But the difference with the rebate, he said, is that the money is going back to policy holders, who finance the corporation.
"This is a rebate based on the robust position the corporation is in," Horgan said.
Public Safety Minister Mike Farnworth said drivers can expect the rebate to start rolling out in May.
