So much for ‘relief’ at the pumps.
Albertans hoping for cheaper fuel ahead of the federal carbon tax cut were in for a rude awakening this weekend, as gasoline prices jumped instead.
Despite the fact that the consumer carbon tax is set to drop to zero on Tuesday — supposedly cutting gas prices by up to 18 cents per litre — drivers in Calgary saw prices surge as high as $1.58 per litre on Sunday, up from $1.43 at the start of March. The increase comes just as Albertans brace for a cold spell, which at least means some temporary relief on home heating bills.
Premier Danielle Smith was quick to pounce, warning gas companies not to take advantage of consumers.
“What we don’t want to happen is to have a phony tax cut,” Smith said on her Saturday radio show. “We don’t want consumers getting ripped off… fair warning, we’re going to be taking a look at it.”
Smith directed a review into the price hikes, claiming there has been no significant change in wholesale prices to justify the jump. She also suggested that talk of tariffs may be playing a role in driving up costs.
But experts weren’t exactly buying her outrage.
Dan McTeague, president of Canadians for Affordable Energy, called Smith’s warnings “shallow” and argued that the price bump was expected. He pointed out that while the consumer carbon tax is being eliminated, the industrial carbon tax — paid by businesses — remains untouched.
“Of course, it’s not (real relief),” McTeague said in a column published in The Western Standard. “The consumer carbon tax has been zeroed out, at least for the moment, not repealed. Meanwhile, the industrial carbon tax, on business and industry, is not only being left in place, it’s being talked up in exactly the same terms as the consumer tax was.”
That means businesses will continue paying the tax — and those costs will still be passed down to consumers, just in less obvious ways. While home heating and gas prices may see some immediate relief, food and other essentials are unlikely to get much cheaper anytime soon.
That’s because the industrial carbon tax still applies to the trucking, farming and manufacturing sectors, which means that grocery bills won’t magically shrink overnight.
McTeague took it a step further, arguing that the remaining carbon tax burden will “ultimately be passed down to working Canadians in the form of higher prices.”
“So when prices don’t drop, (Prime Minister Mark) Carney & Co. will probably blame Donald Trump rather than their own crooked tax regime,” he added.
Meanwhile, the federal government has maintained that the carbon tax cut will help reduce inflation overall. A report from Desjardins Securities predicted that inflation could drop by 0.7% in April, bringing it down to 2.1% for the month.
However, as Albertans are learning firsthand, any promised savings might be eaten up by price increases elsewhere.
And with Trump’s tariff threats looming, EV mandates still in place and global markets in turmoil — not to mention emissions caps on Alberta’s oil sector — the idea that removing the carbon tax will magically solve affordability issues is looking more and more like smoke and mirrors.
