FUEL FOLLY: Carbon Tax To Hit Wallets Hard


Liberal carbon tax to increase cost of living, make Canadians poorer

Fuel is the lifeblood of our economy. Every product we consume uses fuel somewhere throughout its life, whether through transportation or production.

That means there’s no way to increase fuel prices without increasing the price of everything else. As a result, higher fuel costs means the cost of living will go up.

Of course, that’s exactly what we can expect from the carbon tax.

While the Environment Minister still won’t tell Canadians how much the carbon tax will cost overall, some details on the impact on fuel costs have emerged.

According to a federal report, the tax will apply to all liquid fuels, including gasoline, aviation fuel, natural gas, diesel fuel, as well as solid fuels like coal.

By 2022, the tax will have risen from $10 a tonne, to $50 per tonne.

What will this mean for fuel prices?

Here are projected price increases per litre of fuel:

  • Gasoline: 11.6 cents
  • Diesel: 13.7 cents
  • Aviation turbo fuel: 13 cents
  • Aviation gasoline: 12.4 cents

And here are the increases per cubic metre for other fuels:

  • Natural gas: 9.8
  • Propane: 7.7

Coke and Coal will face increases of between $88.62 and $158.99 per tonne.

Federal officials expect these prices to be incorporated in the cost of products – which will feed into a general increase in prices.

While prices increase, Canadians will continue to see stagnant wage growth. Wage growth fell to its lowest level in over 20 years, and is already not keeping up with inflation. As a result, Canadians are getting poorer in real terms.

The rapidly increasing carbon tax will only make that worse, making many more Canadians poorer than would otherwise be the case.

One estimate of the yearly cost to households gives some idea of what Canadians would face. According to Jennifer Winter of PolicySchool.ca, the cost to households of the $50 a tonne carbon tax would range from a minimum of $603 in BC – who already has a carbon tax – to a maximum of $1,120 in Nova Scotia with other provinces in between.

Remember, this all assumes the government is being honest in their figures and in the implementation of the tax. We already know it’s not revenue neutral despite their promises, as the government is simply giving the money they take from us and handing it to provincial politicians to decide what to do with it. There’s no guarantee it will find its way back to the taxpayers.

As we can see from the numbers above, the carbon tax will have a real, and negative, impact of Canadians. By taxing fuel, the government is going to drive up the cost of everything, and all of us will literally pay the price.

That’s why it must be stopped.

Spencer Fernando

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8 comments Add yours
  1. As usual you present a myopic view of the topic. Tax on carbon will reduce usage and make funds available for less toxic and greener energy innovations which will benefit your grandkids and mine.

    1. Don’t believe the even more “myopic” propaganda foisted on us by the elites who wish to rule over us plebs.

      CO2 is part of the carbon cycle, necessary for life, is necessary for photosynthesis and all advanced life. It is not pollution as the elites will claim. Releasing the locked up CO2 restores the balance to the ecosystem created as a result of millions of years of CO2 being removed. The world used to be warmer and far more lushly inhabited. We are actually restoring a balance to the atmosphere.

      Moreover, COs is the subject of the tax. Not carbon, but the trace gas carbon dioxide. The connotation is Dickensonian England’s high levels of atmospheric soot, against which we in Canada have been spectacularly successful.

      And don’t fret about the sea levels. They have been rising 2.8 feet per century for the last 140 centuries. This natural phenomenon is a result of the world emerging from the last of several ice ages. It’s NOT because of our industrial activity.

      As far as the grandkids, I would like to see them healthy. What we are forgetting is thata poorer population which refrains from heating its buidings homes, especially in Canada’s cold climate certainly won’t make those kids (or adults and seniors) any healthier.

    2. George, your ill informed and fact less ad hom attack is only exasperated by your technical ignorance of and unicorn thinking about the green energy scam, so I felt it deserved a response in kind.

    3. More green? You mean like burning wood? Because make no mistake, in areas of the nation that have “evil” fueled electricity grids or they use gas or oil, the instant reaction will be to switch to wood or pellets. Both of these emit ACTUAL carbon particulates into the atmosphere.

      And how about we speak the truth about wind and solar and just how much pollution is generated, REAL pollution too, to be able to even MAKE the devices in the first place! Steel and rare earths materials don’t just pop into existence. Steel takes a massive amount of carbon to MAKE (Steel has carbon added to it and it is almost always from coal). On the solar front, the volume of caustic chemicals that are used to produce them is staggering and much of it is in China, where there are little in the way of regulations on how they are handled.

      And you accuse “deniers” of being myopic… Right…

    4. An increase in atmospheric plant food will actually benefit our children because it will contribute to a more verdant planet and hence to a more ecologically satisfying future.

  2. Another excellent column! Taxes stifle growth and innovation. Business costs rise, people spend less, people laid off….. Govt should be incentivizing not punishing. Whoever says governments know better than the general public should look at North Korea, Cuba, Russia… A society that is allowed to innovate of their own free will and ingenuity will get us to where we need to be. It’s the people that make changes not governments. I sure wish people would read their history and understand economics a bit better.

  3. Spencer, I would caution that any and all taxes on anything are dangerous to the prosperity of the nation. Inflation due to the economy is one thing. Taxation remains regardless of pay raises. This increase in cost on fuels will permanently remove a percentage of money from the economy regardless of how many more raises I or anyone else get.

    This whole exercise, as horrible and as painful as it will be, is necessary. It is what will guarantee that Trudeau is gone in 2019. Taxing at this rate will assure the voting public will be constantly aware of his insanity and stupidity.

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