Ontario Independent

Thursday, June 30, 2022

This is how the carbon tax hike on April 1 will affect gas prices

This is how the carbon tax increase on April 1 will affect gas prices.

Key Takeaways:

  • Due to an increase in Canada’s carbon pricing plan, filling up your gas tank on Friday morning will be more expensive.
  • Provincial governments and the energy industry have pleaded with the federal government to delay the planned increases, but it has refused.

Filling up your gas tank on Friday morning will be more expensive due to an increase in Canada’s carbon pricing plan.

The carbon tax will raise the cost of a liter of gas by 2.2 cents beginning April 1. The carbon tax will now account for 11 cents per liter due to this change.

In July, rebates to offset the impact of the carbon tax will be mailed or delivered via direct deposit.

Provincial governments and the energy sector have pleaded with the federal government to postpone the planned increases, but the federal government has refused.

Also read: Ontario will continue to administer rapid tests until July

“I believe you’re going to increase consumer pressure, and consumers are already dealing with inflation,” says Gurpreet Lail, president of the Petroleum Service Association of Canada.

Michael Chung, a Toronto food delivery driver, told CTV News Toronto that he’s been refueling $25 at a time because that’s all he can afford.

“Gas is too expensive, so I can’t make as many deliveries as I’d like, affecting my wages,” Chung explained.

Jody Grewal, an assistant professor at the Rotman School of Management, said they would have preferred the federal government to postpone the tax increase but must strike a balance.

“We need to assess the situation. Climate change does not pause because we are amidst a financial crisis, “Grewal explained.

This is how the carbon tax hike on April 1 will affect gas prices
This is how the carbon tax hike on April 1 will affect gas prices. Image from CBC News

Environment Minister Steven Guilbeault tried to defend sticking to CTV’s Power Play timeline on Tuesday.

“The cost of crude oil has raised substantially due to the war in Ukraine and provincial taxes,” Guilbeault explained.

Alberta has put a hold on collecting a 13% gas tax to give motorists a break. The Ontario govt has stated that it will not reduce gas taxes unless the federal government follows suit.

In April 2023, the gas tax will increase by about 3.2 cents per liter.

According to Dan McTeague, President of Canadians for Affordable Energy, the clean fuel standard, which is set to take effect in December 2023, will raise the cost of a liter by about four cents.

“To put things in view, between now and 2030, diesel and gasoline will face carbon tax increases of at least 45 cents per liter, if not sooner,” McTeague said.

Source: CTV news

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