Edmonton Journal

How will the federal government's carbon tax increase affect you?

- MIA RABSON

OT TAWA The federal tax on carbon rose by $15 per tonne Monday.

Here are some questions answered about what this could mean for you:

Canada has two different carbon pricing programs — one for big industry where companies pay the price on a share of their actual emissions, and a consumer carbon levy which is applied to fossil fuel purchases. The consumer levy affects individual­s, small and medium-sized businesses, First Nations, as well as public-sector operations such as hospitals, universiti­es, schools and municipali­ties. The price change on April 1 affects the consumer levy, which applies in every province and territory except British Columbia, Quebec and Northwest Territorie­s.

B.C. and Northwest Territorie­s both have their own, very similar carbon tax for consumers. Quebec has a cap-and-trade system. The fuel charge is added to the price of more than 20 different fuel sources that produce greenhouse gas emissions when burned for energy, including gasoline, propane, diesel and natural gas. The additional cost to each fuel depends on how many greenhouse gases are produced when that fuel is burned to make energy.

A litre of diesel produces more carbon dioxide than a litre of gasoline, for example, so the carbon price is higher on a litre of diesel than it is on gasoline. The effect will be similar in all provinces but Quebec. Gasoline went to $80 per tonne from $65 per tonne, which means the carbon tax on a litre of gasoline is now 17.6 cents per litre, up 3.3 cents per litre from before. That means filling a 50-litre tank from empty will cost about $8.80 in carbon tax, about $1.65 more than before. On Monday the price for a litre of diesel will now include 21.39 cents in carbon tax, up from 17.38 cents. The price for propane will now include 12.38 cents a litre in carbon tax, up from 10.08 cents. A standard 20-pound barbecue propane tank will cost about $2.20 in carbon tax to fill, compared with $1.78 over the last year.

On average in Canada, households use about 2,280 cubic metres of natural gas in a year, mostly for heat. At $80 per tonne, the carbon tax will add 15.3 cents to a cubic metre of natural gas, up from 12.4 cents previously. That amounts to an annual carbon tax bill for natural gas of about $347 on average, compared with $282 over the last year.

In Alberta, the federal rebate after Monday is $225 for a single, $337.50 for a couple and $450 for a family of four.

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