(OTTAWA) Rising crude oil prices, not taxes, are to blame for skyrocketing fuel prices at the pump, the federal Minister of Natural Resources argued Friday, rejecting the claim of the first prairie ministers for a suspension of the increase in the “federal carbon price”.
Updated yesterday at 4:17 p.m.
“The truth is that 94% of the price of gasoline has nothing to do with the price of pollution,” Natural Resources Minister Jonathan Wilkinson wrote Friday to the Premiers of Alberta, Manitoba and Saskatchewan, as the federal carbon price increased by $10 a tonne.
“The vast majority of the price increase that Canadians are seeing at the pumps right now is due to the increase in the price of crude oil — largely caused by (sic) the illegal invasion of Ukraine by the Russia. »
Mr. Wilkinson argues that the federal carbon price charged on consumer goods like fuel is equivalent to about 6% of the price of gasoline at the pump.
He also argued that most Canadians who pay the federal carbon tax get more money back from Ottawa, through rebates sent out each year that, starting this year, will be replaced by quarterly installments.
Manitoba Premier Heather Stefanson, her Saskatchewan Premier Scott Moe and Alberta Premier Jason Kenney last week urged Prime Minister Justin Trudeau to “temporarily suspend” federal carbon pricing.
The three prime ministers argued that families were currently facing levels of inflation not seen in decades and that anything that would drive up fuel prices further was not appropriate.
Carbon Market in Quebec and N.S.
Friday’s increase, part of the federal “carbon tax” schedule, adds another 2.2 cents to the cost of a liter of gasoline; the tax is now 11 cents per litre.
The federal tax applies directly in Alberta, Saskatchewan, Manitoba and Ontario. But British Columbia, New Brunswick and Prince Edward Island are also increasing their provincial carbon taxes, to keep pace.
Quebec and Nova Scotia have instead implemented a cap-and-trade system for emission rights (carbon market). Newfoundland and Labrador will raise its price to $50 a tonne later this year.
The price in British Columbia goes from $45 to $50 per tonne; in New Brunswick, it goes from $40 to $50, and in Prince Edward Island, which has not increased it since 2020, the price goes from $30 to $50 per tonne.
Only the four provinces directly covered by the federal system (Alberta, Saskatchewan, Manitoba and Ontario) receive the rebates, which aim to financially help families who have paid the federal “pollution price”, while encouraging them to use less fuel.
Rebates vary from province to province, depending on the amount of fossil fuel used: they range from a low of $745 this year in Ontario to $1,101 in Saskatchewan.
For the first time, these checks will be distributed throughout the year, rather than in a single payment, with a double payment in July of this year, then quarterly payments in October and January next.
Other provinces have adopted various plans, including tax credits, gas tax rebates, climate action grants — or a combination of these measures.
Guilbeault resists the conservatives
Federal Environment Minister Steven Guilbeault has resisted political pressure, including from prairie premiers, to delay or reverse the $1 hike.er April, because of soaring fuel prices.
Mr. Guilbeault explained that the Liberal government was not going to slow down or back down on its climate action plan, of which the pricing of carbon pollution constitutes the “cornerstone”.
The Conservatives tabled a motion last month calling on the Liberals to delay or reverse the 1er April, because gasoline prices had already increased significantly.
Several Conservative Party leadership candidates have also called for it, while also promising to scrap carbon pricing altogether if they win the leadership and then form government after the next election. Thus, MP Pierre Poilievre drew a crowd to Ottawa on Thursday evening for a rally aimed in particular at “eliminating the carbon tax”.
According to the Canadian Automobile Association (CAA), the average national gasoline price as of March 31 was $1.72 per liter, up 50 cents from March 1.er April 2021. The average pump price peaked at $1.85 per liter on March 11. Until Thursday evening, the “carbon price” accounted for 8.8 cents per litre.