Canada’s carbon pricing is going up again. What it means for your wallet – National
Canadians in some provinces and territories will soon be paying a little more at gas stations as federal carbon prices are set to go up starting Saturday.
Fuel rates will increase by 30% from $50 per tonne of emissions to $65 on April 1st. This equates to an increase of about 3 cents per liter for gas, reaching a total of 14 cents per liter.
of Plan to increase Applies in Ontario, Manitoba, Saskatchewan, Alberta, Yukon and Nunavut.
Meanwhile, carbon price spikes will take place on July 1 in Newfoundland and Labrador, Nova Scotia and Prince Edward Island.
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Canada started pricing carbon pollution in 2019.
The move is part of Ottawa’s commitment to tackling climate change with the goal of achieving net zero carbon emissions by 2050.
Canadians will see a rise in pumps, but higher carbon prices are not expected to have a significant impact on gas costs, said Hadrian Martins-Kirkwood, a senior fellow at the Canadian Center for Policy Alternatives. rice field.
“It’s an incremental increase, but it’s not really going to be a big year-to-year change that people will notice,” he told Global News.
For individuals, Mertins-Kirkwood estimates it could be $1 more per tank, depending on the size of the vehicle. It’s also “not a big expense” for businesses, he said.
Mertins-Kirkwood said things like oil market fluctuations and gas taxes have a far greater impact on energy costs.
“These fluctuations are much larger than the carbon price.”
The carbon price hike comes amid temporary relief for Canadians, with reported gas price drops in February after record high costs last year. Gasoline prices in Canada topped $2 a liter for the first time last year.
On a monthly basis, Canadian drivers cut their gas bills by 1% in February. Statistics Canada said in its latest report: Overall, gas prices fell 4.7% in February. This is the first annual decline since January 2021, reports StatCan.
The agency said the year-on-year decline was partially due to the significant price increase seen in February 2022 amid Russia’s invasion of Ukraine.
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The national average gas price in Canada was 150.8 cents per liter on Friday morning. According to GasBuddy. of CAA quote On Friday it was 149 cents per liter.
A carbon tax will not only raise gas prices, but it could also seep into Canada’s wallets in other ways.
For example, aviation gasoline in the four states also rose by about 3.5 cents per liter, for a total of about 16 cents per liter.
However, aviation gasoline and aviation turbofuel rates will remain unchanged in the region due to the “high reliance” on air transport, according to the federal government.
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Diesel oil used in household appliances has risen to 17 cents per liter, up nearly 4 cents.
Other food and shipping experts say carbon pricing could also have knock-on effects for food prices, with Canada’s truck-based transportation industry spending more to fill up its tanks. You’re going to spend money.
“There may be an impact on things like shipping, but it’s a relatively small impact,” said Mertins-Kirkwood.
Do rebates make a difference?
Ottawa claims that 8 out of 10 Canadian households will get back more money than they would pay under the federal carbon pricing plan. Climate action incentives.
Canadians can claim CAI payments by filing an annual federal tax return.
Mertins-Kirkwood said most households, with the exception of high-income earners, are “better off” from carbon pricing due to government rebates that recycle income back to their families.
However, the independent oversight body, the Congressional Budget Office (PBO), said in last year’s report By 2030-31, the majority of Canadian households will experience a long-term “net loss” from federal carbon pricing.
According to the PBO, people in the top quintile of incomes in Alberta will pay the highest net costs from the carbon tax, while households in the lowest income quintile in Saskatchewan will receive the largest share of the net cost from the rebate. will be able to obtain a net profit of
— Using files from Craig Lord of Global News
© 2023 Global News, a division of Corus Entertainment Inc.
