As the federal consumer carbon price ends on April 1, Canadians could notice a “significant” change in costs when they head to the gas station — though whether it lasts amid global uncertainty is less clear.
In an interview with Media, Patrick De Haan, head of petroleum analysis at GasBuddy.com, stated that consumers should see an average drop in gas prices of 15 to 16 cents per liter regardless of where they live in the country. For diesel users, those savings could even be higher, at around 20 cents per liter. He stated, “Over the next, I’ll call it 48 hours, the federal carbon tax being paused is really going to give every province some form of relief here.” However, despite the fact that the carbon price is typically a line item in a gas station’s point of sale system that can be removed at midnight, some gas stations may still have to manually remove it, so you might not notice the change right away. According to De Haan, despite the fact that it has been estimated that there could be up to a 17.6 percent per liter drop at the current rate of the carbon price, the 3% increase in crude oil prices that occurred on Monday means that there is a slight Keep in mind, gas prices don’t just move for one lever at a time. He continued, “There are numerous levers that can simultaneously drive prices up or down.” “So, even though this is a pretty big lever that will help prices go down a lot, the price of oil and the cost of oil as a whole are also going up.” He thought that the average person who filled up their gas tank once a week could save about $6, which would save them about $300 over the course of a year. Former prime minister Justin Trudeau claimed that the consumer carbon price would put a price on pollution to encourage people to use fewer fossil fuels. However, it has been met with opposition at the federal and provincial levels ever since it was implemented. The industrial price remains the same. The Canada Carbon Rebate, which provided eligible Canadians with quarterly tax-free payments, was used to try to offset consumer price increases. According to Ottawa, approximately 80% of Canadians were receiving more than they were paying. However, Mark Carney signed an order-in-council shortly after being sworn in as prime minister to begin the process of eliminating the consumer fuel tax “immediately,” with the change taking effect on April 1. The rebate is also set to end, and the final payment to Canadian bank accounts is set for April. Economist Moshe Lander told Global News shortly after the process to end the pricing plan was signed that while gas station prices could drop, there would be a “bit of a hole” due to the cancellation of the rebate. “Even if we were to say the average family is losing out on $150 to $500, put that over 365 days and you’re talking about a couple of Timbits to a small cup of coffee at Tim Hortons,” he said.
According to GasBuddy.com, the national average price of a liter of gas is $1.55, or about four cents less than this time last year. In addition, some provinces are preparing for increased demand and a gasoline switch due to the same seasonal shifts as the summer. De Haan estimates that, despite this, it won’t make up for the money saved at the pump, which will result in “lower prices throughout the rest of the year.” De Haan stated, “It’s going to be significant year in and year out.” “The carbon tax would continue to increase on April 1 under the previous system, so, in essence, there will be significant savings.”
Consumer carbon price ends April 1. Your savings could be ‘significant’
