Canada's national carbon price increases today: What you need to know

PTC Web Desk: As of today, Canada's national price on pollution is set to rise by $15 per tonne, impacting consumers across the country. Here's a comprehensive breakdown of what this increase means for you.

Who Bears the Carbon Price?

Canada operates two distinct carbon pricing programmes: one for major industries, where companies pay a share of their actual emissions, and another for consumers. The consumer carbon levy applies to individuals, small and medium-sized businesses, First Nations, as well as public-sector entities such as hospitals, universities, schools, and municipalities.

What Does the Consumer Carbon Levy Apply to?

The consumer carbon levy is applied to over 20 different fuel sources used for energy production, including gasoline, propane, diesel, and natural gas. The levy is calculated based on the amount of greenhouse gases emitted when these fuels are burned.

Impact on Fuel Prices

With the price increase effective today, consumers can expect to see a notable impact on fuel costs:

Gasoline: The carbon price per litre of gasoline will rise from $65 to $80, resulting in an increase of 3.3 cents per litre. Filling a 50-litre tank will now cost approximately $8.80 in carbon pricing.

Diesel: The carbon price per litre of diesel will increase from 17.38 cents to 21.39 cents.

Propane: The carbon price per litre of propane will rise from 10.08 cents to 12.38 cents, affecting the cost of filling a standard 20-pound barbecue tank.

Natural Gas: The carbon price per cubic metre of natural gas will increase from 12.4 cents to 15.3 cents, resulting in an annual carbon price bill of about $347 for the average household.

Indirect Costs and Rebate Programmes

In addition to direct fuel costs, carbon pricing can lead to indirect costs as companies adjust prices to offset their own carbon expenses. Rebate programs, such as the Canada Carbon Rebate, aim to mitigate the financial impact on households. These rebates, distributed quarterly, are based on family size rather than income and are designed to offset the increased cost of living associated with carbon pricing.

Rebate Amounts by Province

Rebate amounts vary by province and household size, with rural residents receiving a 20% increase. Here are the quarterly rebate amounts for an individual, couple, and family of four in each province:

Alberta: Single - $225, Couple - $337.50, Family of Four - $450Saskatchewan: Single - $188, Couple - $282, Family of Four - $376Manitoba: Single - $150, Couple - $225, Family of Four - $300Ontario: Single - $140, Couple - $210, Family of Four - $280New Brunswick: Single - $95, Couple - $142.50, Family of Four - $190Nova Scotia: Single - $103, Couple - $154.50, Family of Four - $206Prince Edward Island: Single - $110, Couple - $165, Family of Four - $220 (all households considered rural)Newfoundland and Labrador: Single - $149, Couple - $223.50, Family of Four - $298

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