Canadian drivers will pay billions more for gas and diesel under new climate change regulations that will be detailed Saturday. “The regulations may increase fuel prices” in addition to the current 12¢ a litre carbon tax on gasoline, said the Department of Environment..“Incremental price impacts will likely increase year by year,” the department yesterday wrote in a draft statement. Fuel price hikes by 2040 were put at up to $46 billion with an additional $9 billion in economic costs..According to Blacklock's Reporter, higher prices will follow the enforcement of a Clean Fuel Standard. It mandates more use of ethanol and other renewable fuels in gasoline and diesel..“Modeling conducted for this analysis estimates the regulations could result in societal costs that range from $22.6 billion to $46 billion with a central estimate of $30.7 billion,” wrote staff..“Therefore the greenhouse gas emission reductions would be achieved at an estimated societal cost per tonne between $111 and $186 with a central estimate of $151,” the equivalent of 36¢ more per litre of gasoline..New rules would take effect July 1, 2023 with “the most significant costs incurred in 2024” and would increase yearly by increments similar to the carbon tax. Higher costs were intended to be “an incentive for firms to invest in innovative technologies,” wrote staff..“I am excited,” Environment Minister Steven Guilbeault said yesterday in a statement. “It just goes to show that we can deliver clean air, good jobs and a strong economy all at once. The Clean Fuel Regulations will help secure a foundation for more growth.”.Guilbeault’s department in its Impact Assessment Statement said higher costs would fall heavily on users like commuters, truckers, and railways. “The regulations will increase production costs for primary suppliers which would increase prices for liquid fuel consumers, e.g. households and industry users,” it said..“The costs of regulations will not be evenly distributed across society,” it said. “Households and industrial users that consume more gasoline and diesel are expected to incur a higher impact.”.Staff did not estimate the cost per household or litre of gas or diesel. Then-Environment Minister Jonathan Wilkinson in 2021 said higher costs were inevitable..“At the end of the day, politicians have an obligation to the public to tell them the straight goods,” Wilkinson told reporters. “And if they have a disagreement that’s fine. But let’s be serious and let’s be real about the facts.”.“Certainly there are additional costs associated with moving to reduce the amount of carbon in those fuels,” said Wilkinson..Carbon taxes are already expected to add substantial costs to fuel by 2030. The current tax schedule under the Greenhouse Gas Pollution Pricing Act caps rates at the equivalent of an extra 40¢ per litre of gasoline, 27¢ more per litre of propane, 34¢ per cubic metre of natural gas, 44¢ for aviation fuel and an extra 47¢ per litre for diesel.
Canadian drivers will pay billions more for gas and diesel under new climate change regulations that will be detailed Saturday. “The regulations may increase fuel prices” in addition to the current 12¢ a litre carbon tax on gasoline, said the Department of Environment..“Incremental price impacts will likely increase year by year,” the department yesterday wrote in a draft statement. Fuel price hikes by 2040 were put at up to $46 billion with an additional $9 billion in economic costs..According to Blacklock's Reporter, higher prices will follow the enforcement of a Clean Fuel Standard. It mandates more use of ethanol and other renewable fuels in gasoline and diesel..“Modeling conducted for this analysis estimates the regulations could result in societal costs that range from $22.6 billion to $46 billion with a central estimate of $30.7 billion,” wrote staff..“Therefore the greenhouse gas emission reductions would be achieved at an estimated societal cost per tonne between $111 and $186 with a central estimate of $151,” the equivalent of 36¢ more per litre of gasoline..New rules would take effect July 1, 2023 with “the most significant costs incurred in 2024” and would increase yearly by increments similar to the carbon tax. Higher costs were intended to be “an incentive for firms to invest in innovative technologies,” wrote staff..“I am excited,” Environment Minister Steven Guilbeault said yesterday in a statement. “It just goes to show that we can deliver clean air, good jobs and a strong economy all at once. The Clean Fuel Regulations will help secure a foundation for more growth.”.Guilbeault’s department in its Impact Assessment Statement said higher costs would fall heavily on users like commuters, truckers, and railways. “The regulations will increase production costs for primary suppliers which would increase prices for liquid fuel consumers, e.g. households and industry users,” it said..“The costs of regulations will not be evenly distributed across society,” it said. “Households and industrial users that consume more gasoline and diesel are expected to incur a higher impact.”.Staff did not estimate the cost per household or litre of gas or diesel. Then-Environment Minister Jonathan Wilkinson in 2021 said higher costs were inevitable..“At the end of the day, politicians have an obligation to the public to tell them the straight goods,” Wilkinson told reporters. “And if they have a disagreement that’s fine. But let’s be serious and let’s be real about the facts.”.“Certainly there are additional costs associated with moving to reduce the amount of carbon in those fuels,” said Wilkinson..Carbon taxes are already expected to add substantial costs to fuel by 2030. The current tax schedule under the Greenhouse Gas Pollution Pricing Act caps rates at the equivalent of an extra 40¢ per litre of gasoline, 27¢ more per litre of propane, 34¢ per cubic metre of natural gas, 44¢ for aviation fuel and an extra 47¢ per litre for diesel.
