What will replace lost gas tax revenue?
The move is on to have all cars run on electric storage batteries. Very little has been written about power costs, gasoline vs. electric. Here are a few calculations:
Present gas mileage is about nine litres per 100 km. That’s about $9/100 km. Tesla advertises the Model 3 as achieving 500 km on a charge of 100 kWh, or 20 kWh/100 km. Presently my electric bill is about $0.175/ kWh with all charges in. Off-peak use is charged at $0.077/kWh plus HST. That would be $1.54/100 km.
For the commuter who drives 100 km per day, this difference in fuel cost can become a big factor.
Federal gas tax is now $0.143/litre or $1.29/100 km, and HST is about $1.03/100 km. The tax content of electricity is HST at $0.20/100 km.
There is now no highway tax on electricity. Since we’ll be able to charge our cars at home in off-peak hours, how will government replace the disappearing revenue? Ron Fast, Ancaster