Canadians likely won’t notice an increase in gas and diesel prices brought on by new federal clean fuel regulations, according to a federal briefing note. Blacklock's Reporter says officials say that given the usual volatility at the pumps, the added cost will blend into regular fluctuations.A May 8 memo from the agriculture department estimates the Clean Fuel Regulations will increase prices by 13¢ per litre for gasoline and 16¢ for diesel by 2030. But it claims “most consumers, including farmers,” are unlikely to notice the change.The regulations, introduced in 2023, require increased use of ethanol and biodiesel — fuels that are generally more expensive. Gasoline will need to contain up to 15% ethanol, up from the current 5%..“In 2030 Canadians who drive fossil fuel-powered vehicles may see an increase of between 6¢ and 13¢ per litre for gasoline and 7¢ to 16¢ per litre for diesel,” the note reads, adding that market forces also play a major role in pump prices.Officials insist the added cost should not be seen as a tax. “Regulations are not a tax and are a market-based mechanism designed to spur innovation of clean technologies,” the note says.A 2023 analysis by the parliamentary budget office pegged the cost impact at 17¢ per litre of gas, a similar estimate to the latest briefing..The new note comes amid growing concerns that climate policies will increase household costs. A 2024 report from the federal Net Zero Advisory Body called for sweeping climate reforms that also address housing, food security, and affordability issues.Meanwhile, a separate 2024 study published in the Journal of Public Health warned that high fuel costs are already affecting millions of Canadians. Researchers found that between 6% and 19% of households face “energy poverty” — defined as spending over 10% of annual income on home heating and cooling or paying more than double the national median for energy costs.“Energy poverty is not yet on the national policy agenda,” the study concluded.
