Toronto drivers could be feeling less of a pinch at the pumps this week.
As of Tuesday, most Canadians are no longer paying the consumer carbon levy, which should immediately affect prices at gas stations. Quebec remains the only province in the country that hasn’t abandoned consumer carbon pricing.
In Toronto, gas prices could drop by 20 cents on Tuesday, according to gas price predictor Gas Wizard.
Gas Wizard estimated gas prices in the Toronto area would be around 136.9 cents per litre for regular gasoline and around 166.9 cents per litre for premium. According to crowdsourced reporting tool GasBuddy, fuel prices in the Toronto area are hovering around the 136.6 to 136.9 cents per litre range.
Prime Minister Mark Carney announced the removal of the consumer carbon tax, one of Justin Trudeau’s key climate policies, as his first official acts earlier in the month before the launch of the official election campaign.
Premier Doug Ford took to X Monday to call the federal consumer carbon charge “the worst tax ever.”
“Now, we need to see every cent of savings passed onto hard-working Canadians at the pumps,” he added.
The levy had previously been set at $80 per tonne, an amount that has increased yearly since the charge was first imposed in 2019. That had most recently equated to 17.6 cents on each litre of gasoline and roughly $4 for each gigajoule of natural gas burned for home heating.
Tuesday’s numbers are “a big deal,” said Patrick De Haan, GasBuddy.com’s head of petroleum analysis.
“Usually, the average moves just tenths of a penny every day,” he said. “This highly suggests that Canadians are starting to see big relief.”
De Haan reiterated that the carbon tax isn’t necessarily gone for good — it’s simply on pause.
Prices will probably trend upwards through the spring due to external factors like increased demand, maintenance at refineries and seasonality, De Haan added.
“Whether or not there’s some reincarnation of the carbon tax down the road, after the election, is really difficult to know at this point,” he said. “I do expect that it will bring meaningful relief as long as the pause continues.”
The final Canada Carbon Rebate is to be paid starting April 22 for those who file their 2024 tax returns before Wednesday.
For Canadians filing after that date, the rebate will be sent after their returns are assessed.
With files from The Canadian Press
