They should be higher though.
Carbon pricing pushes gas prices higher in Ontario, Alberta
Drivers in Ontario and Alberta rang in the new year with higher gas prices, as provincial carbon pricing schemes came into effect.
In Calgary, the cost of gasoline rose on average three cents overnight, from 1.09/litre to about 1.12/litre, according to the website GasBuddy.com. In Toronto, prices also went up by about three cents, from around 1.10/litre to 1.13/litre.
The three-cents-per-litre increase means it now costs about $2 more to fill up a standard vehicle’s tank in those provinces.
Ontario’s cap-and-trade program and Alberta’s carbon tax, which both came into effect on Jan. 1, were expected to push up gas costs by 4.5 cents/litre in Alberta and 4.3 cents/litre in Ontario.
Prices for diesel fuel and natural gas are also expected to rise. For example, Ontario’s energy regulator says Union Gas bills will go up this month by between $4.65 and $13.54.
The carbon pricing is part of a national strategy to reduce climate-change causing carbon emissions by making polluters pay. All provinces except Manitoba and Saskatchewan signed on to the federal Liberals’ agreement last month
Carbon pricing is nothing new: British Columbia has had a tax since 2008 and Quebec has participated in a cap-and-trade program since 2013.
The federal Liberals have said that all Canadian provinces and territories must put a price on carbon in order to slow climate change, while the opposition Conservatives have argued it won’t put a dent in global emissions but will manage to hurt businesses and consumers.
Alberta’s carbon tax of $20 per tonne, rising to $30 per tonne in 2018, is expected to cost families up to $443 per year, although rebates are available for middle and low-income earners.
Carbon pricing pushes gas prices higher in Ontario, Alberta | CTV News