Cap and trade carbon tax causes diesel fuel spike in Ontario

by Truck News

TORONTO, Ont. — The Ontario Trucking Association is informing members about notices they have received from fuel suppliers regarding the increased cost of diesel fuel resulting from the new carbon pricing system that took effect in Ontario on Jan. 1, 2017.

Suppliers have been informing customers about the new price system and how it’s being reflected on carriers’ fuel invoices.

Reported diesel fuel price increases are said to be in the range of 5.25 to 5.50 cents per litre, which is consistent with a projection made by OTA in  November.

“The impact of the carbon pricing system on diesel fuel prices will not be captured in Ontario at the retail level like other government taxes. Instead, it’s built into the wholesale price like other fuel supplier fees, such as freight and pump fees,” said Stephen Laskowski, OTA president.

It has also been reported to OTA that carriers are expecting an adjustment to the Freight Carriers Association (FCA) fuel surcharge rate. The change is expected to be published later this week to capture the impact of carbon pricing on diesel fuel costs in Ontario. Carriers not part of the FCA system are reporting to OTA they expect to raise their fuel surcharge rates as well.

Alberta also introduced its carbon system on January 1. The impact on diesel fuel prices equates to a 5.35-cent per litre increase.

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    Who wants to fact check this one?Anyone….
    From the Edmonton Sun………….. Aug 10 2016
    Thanks to Statistics Canada, Wikipedia, there would appear to be sufficient evidence to put forward the argument that Canada should be selling carbon credits to other countries, and using that money to relieve Canadians of some of their tax burden.
    Canada has approximately 990-million acres of forests, 370-million acres of wetlands, and 167-million acres of crop-yielding farmland.

    These are called “carbon sinks.”

    Biologists tell us that trees absorb approximately 2.6 tonnes of carbon per acre per year.

    So let’s to the math: 990-million acres x 2.6 tonnes per acre = 2.574-billion tonnes of carbon being absorbed yearly.

    World-wide carbon emissions, in total, have been calculated to be 36-trillion tonnes annually, to which Canada has been accused of contributing 1.67%.

    Ergo, more math: 36-trillion tonnes x 0.0167 (1.67%) = 601.2-million tonnes. This is the amount of carbon that Canada annually contributes towards the doomsday scenario of end of the world as we know it.

    Now, forget the wetlands and the farmland previously mentioned, and focus solely on Canada’s forests, which are third in the world next to Russia and Brazil.

    In forests alone, Canada absorbs almost four times the amount of carbon it emits, meaning the other three-quarters of our forests are sustaining themselves on carbon being emitted by the rest of the world.

    The math speaks for itself. Toss in the carbon being sucked in by wetlands and farmland on top of the carbon emissions our forests absorb, and Canada is virtually as green as green can be.

    Yet our politicians still want to punish us.


  • Carriers will raise rates as best they can. But when they can not get enough of a margin from an increase they will cut wages, again. I have been at this game for over 30 years and it drives me made to think that a politician can make as much as they do and not EARN IT!
    We who move the freight to keep our country strong are always getting screwed by the elected fools.

  • “Canada could already be absorbing 20 to 30 per cent more CO2 than we emit.”

    Highly populated, highly industrialized countries with no trees to absorb their CO2 should be paying Canada for our forests to absorb it.

    Of course Canada is a huge global net ABSORBER of CO2 due to massive forests and a small population. To think otherwise is silly. To compare us to highly populated, highly industrialized countries with no trees to absorb CO2 is also silly. The new taxes will just be an additional drag on an already fragile economy.

    Australia has already cancelled carbon taxes due to the harm done to their economy.

    “The federal Liberal government is determined to impose on the provinces an escalating national carbon tax that will slow growth, undermine competitiveness and degrade our standard of living, all for no discernible impact on global temperatures.” Joe Oliver Former Minister of Finance.

  • If all and all go and transport companies take that increase of fuel pricing they should reduce their services to the minimum and charge the maximum to customers and this will create a wave of frustration and perhaps a national strike but the major companies have to initiate this and the smaller owner op will follow.
    Enough is very much enough let show these monkeys ( politicians) that the population are their Boss not the other way around.

  • I find it amusing that both the left and right nutbars see carbon tax as the boogie man… BC and Quebec have had it in place for awhile. The idea is that you have to pay for the carbon you use along with the manufacturers that are providing the product. Besides the vitriol, anybody else got a better idea besides bitching about it? Personally I think it’s too late to do any good. Enjoy the weather folks. See you in hell.

  • and by the way, this new tax will appear as a fuel surcharge to customers. Some carriers have made out like bandits on FSC, and expect they will again.