Big savings at the pump ahead as carbon tax ends for P.E.I. fuel April 1
CBC
The Island Regulatory and Appeals Commission has confirmed the consumer carbon tax will be removed from P.E.I. fuel prices starting next month.
The change follows an order in council signed by Mark Carney in his first move as prime minister on Friday.
While the order eliminates the consumer carbon tax, Canadians will still receive the carbon rebate for the month.
Currently, the tax adds 17.6 cents per litre to gasoline and 21.4 cents to diesel.
However, because HST is also applied to the carbon tax, the actual savings at the pump will be slightly higher — about 20 cents per litre for gas and 24 cents for diesel starting April 1.
There's no carbon tax charged on home heating oil as Ottawa announced a controversial exemption for that a year and a half ago.
Former prime minister Justin Trudeau first implemented the carbon pricing scheme in 2019.
It was designed as a financial incentive for people and businesses to change their behaviour to burn less fossil fuel and transition to greener forms of energy, helping Canada lower its emissions.
But as Canadians experienced high inflation in the years following, Conservative Leader Pierre Poilievre's pledge to "axe the tax" gained traction among voters.
To help offset costs, rebates were offered to residents in provinces where the policy applied.
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