Federal Conservatives are warning that the Liberal government’s Clean Fuel Standard will drive up farming costs and grocery bills, accusing Prime Minister Justin Trudeau’s administration of ignoring the real-world impact of the policy on food production and affordability.In a statement released Monday, Conservative agriculture critic John Barlow said the fuel regulations will impose a hidden tax that will raise the cost of gasoline by 13 cents per litre and diesel by 16 cents per litre by 2030, according to a recent federal agriculture department briefing.Barlow said the Liberal government is “again burdening farmers and producers with expensive fuel taxes while pretending Canadians won’t notice the rising costs at the grocery store.”The internal government briefing reportedly downplays the effect on consumers, suggesting that increases in fuel costs “may not be noticeable by most consumers.” But Barlow dismissed that claim as out of touch with the reality facing rural communities.“Statistics Canada reports that realized net farm income fell by 26 percent in 2024, the largest single-year decline in over a decade,” he said. “Meanwhile, rising costs for fuel, fertilizer, and feed continue to make farming less economically viable and drive food prices higher.”.The Clean Fuel Standard, part of the Liberals’ broader climate plan, aims to reduce carbon emissions by requiring fuel producers and importers to gradually lower the carbon intensity of their products. Critics, including the Conservatives, argue the policy is effectively a second carbon tax that disproportionately affects farmers and rural Canadians.Barlow said increased transportation and production costs will ripple through the entire food supply chain, ultimately hitting consumers at the checkout counter.“This is not simply an agricultural issue; it is another Liberal policy fuelling the national affordability crisis,” Barlow said. “Families already struggling with soaring grocery bills and increased food bank reliance will face even greater hardship.”He added that the Conservatives will push for “common sense policies that support farmers, lower food prices and restore affordability for all Canadians.”The Liberal government has yet to respond directly to Barlow’s comments, but it has previously defended the Clean Fuel Standard as a necessary measure to fight climate change while incentivizing investment in cleaner energy solutions.
