The federal government is increasing the carbon price by three cents per liter, which will have an impact on Ottawa drivers' wallets starting April 1.
The cost of carbon pollution will increase by $15/ton, reaching $80, as a result of this increase, which is part of a larger plan to fight climate change. As a result, the federal carbon tax on gasoline will increase to 17.71 cents per liter for drivers in Ontario.
Dan McTeague, President of Canadians for Affordable Energy, predicts that the average cost of regular gasoline in Ottawa will surge from 159.9 cents per liter to 162.9 cents per liter, a three-cent hike. This increase won't be isolated to Ottawa; motorists across eastern Ontario, including Kingston, will also experience the same price bump.
Comparing present prices to those of a year ago reveals a notable escalation. A year ago, Ottawa's average gasoline price stood at $1.43 per liter, marking a considerable uptick since then.
Despite opposition from figures like Ontario Premier Doug Ford and federal Conservative leader Pierre Poilievre, who argue that the carbon tax unfairly burdens citizens, the federal government remains steadfast in its support. It asserts that pricing carbon pollution represents a crucial step in reducing greenhouse gas emissions and combating climate change. The government emphasizes the redistribution of revenue through the Canada Carbon Rebate program, which provides financial relief to individuals and families affected by the tax.
Premier Ford, echoing the concerns of many, warns of the tax's widespread impact on Ontarians, affecting everything from daily commutes to household expenses. However, proponents of the carbon tax, including Energy and Natural Resources Minister Jonathan Wilkinson, defend its efficacy and fairness. They stress that all revenue collected from the tax is returned to citizens, making it a transparent and efficient approach to addressing environmental challenges.
Despite ongoing debates and opposition, the federal government plans to incrementally increase the carbon tax each year until 2030. Meanwhile, Ontario has extended its gasoline tax cut until the end of 2024, aiming to provide some relief amid rising fuel costs.
