Get ready to pay significantly more at the pump after increases to the federal carbon tax take effect this weekend..As of April 1 the Liberals aim to increase the centrepiece of its cherished climate plan to $65 per tonne of emitted CO2 and equivalents, up from $50 in 2022 and still less than half of the target of $170 in 2030..That in turn will lead to an immediate three-cent jump in the price of a litre of regular gasoline at the pump after the carbon surcharge increases to 14 cents per litre from 11 cents at present. That rate varies, however, by fuel type and any other provincial levies in various parts of the country..The increase will cost the average household between $400-$850 in 2023, even after rebates, according to the Parliamentary Budget Officer. .However, the Canadian Taxpayers Federation is warning of a second carbon tax through clean fuel regulations that are set to take effect on July 1. It essentially amounts to a clean fuel standard that will require both imported and domestically produced diesel and gasoline suppliers to reduce the carbon intensity of their products by 3.5 grams per megajoule from 2016 levels, rising to 14 grams by 2030. The CTF says those will add another 13 cents per litre to the price of gasoline and do not qualify for rebates..In addition, refiners are switching over to so-called ‘summer gas’ formulations that slow the rate of evaporation in warmer weather. Because it’s more expensive to produce, it typically adds another five cents a litre to the retail price. .According to gaswizard.ca Calgary gasoline prices could spike above $1.45 per litre by the weekend. That’s up from about $1.27 last week but well below $1.69 at this time last year, according to GasBuddy.com. .In July it rose as high as $1.90 before the provincial UCP suspended the provincial fuel tax last fall. Gasoline subsequently fell as low as $1.18 in the final week of 2022 but has been on a steady climb since. The provincial levy was about 14 cents a litre, or roughly the same as the carbon tax, which doesn’t include GST..Although Premier Danielle Smith suspended a proposed four-cent reinstatement that was to take effect on Jan. 1, the policy is reviewed quarterly starting on July 1 — after the upcoming election. Even with a modest surplus its not clear how long the province is willing to forego the $650 million raised by the fuel taxes, most of which was plotted back into road maintenance..That compares with British Columbians, who pay almost 36 cents per litre in various provincial and municipal levies — including transit taxes and its own carbon tax — not including GST, PST and the federal carbon tax. .As of March 30, BC had the highest gas prices in the country at $1.80.1 per litre before the carbon tax kicks in on Saturday, according to the Canadian Auto Association. That was followed by $167.2 in Newfoundland and Labrador and $1.62.5 in Prince Edward Island..Ironically, the increase comes at a time when the federal government vowed to tackle inflation in its latest budget. The impact of the carbon tax through all sectors of the economy — and hence inflation — isn’t widely known or agreed upon..Government figures suggest the tax reduces GDP by about 1% or $2 billion per year but doesn’t calculate extra costs. Those must be substantial by any measure; the Canadian Federation of Independent Business says the Feds have colllected more than $22 billion since the tax was implement and stands to reap another $8.2 billion this year alone.."The federal government must act now to provide immediate relief to small businesses in Canada," said Dan Kelly, CFIB president. "Freezing the carbon tax while government focuses on fixing the broken backstop approach would (have been) welcome news in the 2023 budget.”
Get ready to pay significantly more at the pump after increases to the federal carbon tax take effect this weekend..As of April 1 the Liberals aim to increase the centrepiece of its cherished climate plan to $65 per tonne of emitted CO2 and equivalents, up from $50 in 2022 and still less than half of the target of $170 in 2030..That in turn will lead to an immediate three-cent jump in the price of a litre of regular gasoline at the pump after the carbon surcharge increases to 14 cents per litre from 11 cents at present. That rate varies, however, by fuel type and any other provincial levies in various parts of the country..The increase will cost the average household between $400-$850 in 2023, even after rebates, according to the Parliamentary Budget Officer. .However, the Canadian Taxpayers Federation is warning of a second carbon tax through clean fuel regulations that are set to take effect on July 1. It essentially amounts to a clean fuel standard that will require both imported and domestically produced diesel and gasoline suppliers to reduce the carbon intensity of their products by 3.5 grams per megajoule from 2016 levels, rising to 14 grams by 2030. The CTF says those will add another 13 cents per litre to the price of gasoline and do not qualify for rebates..In addition, refiners are switching over to so-called ‘summer gas’ formulations that slow the rate of evaporation in warmer weather. Because it’s more expensive to produce, it typically adds another five cents a litre to the retail price. .According to gaswizard.ca Calgary gasoline prices could spike above $1.45 per litre by the weekend. That’s up from about $1.27 last week but well below $1.69 at this time last year, according to GasBuddy.com. .In July it rose as high as $1.90 before the provincial UCP suspended the provincial fuel tax last fall. Gasoline subsequently fell as low as $1.18 in the final week of 2022 but has been on a steady climb since. The provincial levy was about 14 cents a litre, or roughly the same as the carbon tax, which doesn’t include GST..Although Premier Danielle Smith suspended a proposed four-cent reinstatement that was to take effect on Jan. 1, the policy is reviewed quarterly starting on July 1 — after the upcoming election. Even with a modest surplus its not clear how long the province is willing to forego the $650 million raised by the fuel taxes, most of which was plotted back into road maintenance..That compares with British Columbians, who pay almost 36 cents per litre in various provincial and municipal levies — including transit taxes and its own carbon tax — not including GST, PST and the federal carbon tax. .As of March 30, BC had the highest gas prices in the country at $1.80.1 per litre before the carbon tax kicks in on Saturday, according to the Canadian Auto Association. That was followed by $167.2 in Newfoundland and Labrador and $1.62.5 in Prince Edward Island..Ironically, the increase comes at a time when the federal government vowed to tackle inflation in its latest budget. The impact of the carbon tax through all sectors of the economy — and hence inflation — isn’t widely known or agreed upon..Government figures suggest the tax reduces GDP by about 1% or $2 billion per year but doesn’t calculate extra costs. Those must be substantial by any measure; the Canadian Federation of Independent Business says the Feds have colllected more than $22 billion since the tax was implement and stands to reap another $8.2 billion this year alone.."The federal government must act now to provide immediate relief to small businesses in Canada," said Dan Kelly, CFIB president. "Freezing the carbon tax while government focuses on fixing the broken backstop approach would (have been) welcome news in the 2023 budget.”
