The federal Liberal government will begin levying its carbon tax on greenhouse gas-emitting fuels today in the four provinces that have refused to take part in the pan-Canadian climate framework.
The tax or levy is designed to lower the country’s carbon emissions so Canada can meet the reduction targets it agreed to at the Paris climate summit.
In Ontario, Manitoba, New Brunswick and Saskatchewan, where conservative-minded governments have steadfastly opposed any sort of carbon pricing scheme, Ottawa will apply its carbon tax on fossil fuels — which starts this year at $20 per tonne of GHG emissions. In the provinces that already have other carbon pricing measures, such as Alberta, B.C. and Quebec, nothing changes, since they have models Ottawa has deemed acceptable.
The four provincial governments opposed to Prime Minister Justin Trudeau’s plan — along with the federal Conservative party — fear it will be economically damaging and far too punitive for consumers and small businesses.
Supporters of the Liberal plan say the threat of climate change demands action and a revenue-neutral plan of this sort is the best way to shift patterns of consumption away from GHG-emitting fossil fuels.
How much is this whole thing going to cost me?
Based on federal figures, the tax in the four non-compliant provinces will result in an approximate cost increase of 4.42 cents a litre for gasoline, 5.37 cents for light fuel oil (home heating fuel), 3.91 cents per cubic metre for natural gas and 3.10 cents per litre for propane.
Based on those figures, and according to calculations by CBC News, the average Ontario household will pay roughly $10 more a month for natural gas (based on average of 252 m3 of consumption) as of April 1.
The figure will be considerably lower in the summer but possibly much higher in the winter, when natural gas consumption for home heating spikes. The average Ontario household, for example, consumes about 419 m3 of natural gas in January but only 51 m3 in July, according to data supplied to CBC News by the Ontario Energy Board regulator.
The cost to fill an empty residential oil tank, which are common in places like rural New Brunswick and vary greatly in size, will increase by about $48 for a 910-litre model.
The cost to fully refuel a Honda Civic (based on a 47-litre tank) will increase by about $2, while a full fill-up for a Ford Explorer SUV will cost about $3 more.
