Canadian gasoline pump prices dropped dramatically after the federal government repealed a carbon fuel tax that was previously adopted in 2019.
According to Reuters, Mark Carney signed an order eliminating the Justin Trudeau-era consumer carbon tax on his first day as Canada’s Prime Minister earlier this month, declaring the move will make a difference to hard-pressed Canadians. Conservatives in opposition had long campaigned against the tax.
The Environmental Policy Director at the Washington Policy Center, Todd Myers, tells KVI’s John Carlson, “This happened April 1st… when they eliminated the carbon tax. And in just the first two days gas prices in Canada went down by more than 50-cents a gallon (converting liters to gallons).”
To hear the gas price story and interview between Myers and Carlson, click the play button below.
The Reuters story explains, eight provinces saw fuel prices decline by over six cents per litre on Tuesday, after the taxation officially ceased, according to data by fuel markets tracker GasBuddy.
National average prices for gasoline in Canada fell from near 155 cents (i.e $1.55 Canadia) per litre on Sunday to 143.6 cents (i.e. $1.43 Canadian) a litre on Wednesday, the data showed. New Brunswick saw the largest decline, of 15 cents per litre, while British Columbia and Ontario saw drops of over 10 cents per litre.
The story on Canada ending its carbon fuel tax could have repercussions in Washington because Canadian drivers have crossed the border into Whatcom County and other Washington counties along the Canadian border to buy gasoline at a lower pump price. With Canadian prices falling after the tax’s repeal, it’s possible Washington drivers could soon head north of the border to buy cheaper Canadian gas.
The price of gas and diesel in Washington is affected by a carbon fuel tax known as The Climate Commitment Act.
Former Washington Governor, Jay Inslee, signed into a law a carbon fuel tax as part of a sweeping environmental bill called The Climate Commitment Act (CCA).
The CCA requires a quarterly auction for a permit to emit carbon in Washington. Here’s an explanation of how much the last quarterly auction cost to emit fossil fuels like gasoline, diesel, propane and natural gas. If the auction prices to emit carbon goes up in Washington, those increases have resulted in the price pump for those fuels.
Myers dispelled claims by Inslee that the carbon fuel tax in Washington wouldn’t increase gasoline and diesel pump prices in 2024.
