Carbon tax hikes would make high gas prices more painful

Author: Franco Terrazzano 2021/10/28

OTTAWA, ON: The Canadian Taxpayers Federation released a report that shows what current gas prices would cost Canadian drivers with a $170 per tonne carbon tax and the federal government’s planned second carbon tax.

“Drivers are feeling the pain of high gas prices and the carbon tax hikes would make these prices more painful,” said Franco Terrazzano, Federal Director with the CTF. “The federal carbon tax hikes would push gas prices to more than $2 per litre in some cities. These sky-high gas prices should be a wakeup call for politicians to prioritize relief at the pumps.”

The federal government plans to increase its carbon tax from $40 per tonne today to $170 per tonne in 2030. That would translate to the current 9 cent per litre carbon tax rising to nearly 40 cents per litre. 

The federal government is planning on imposing a second carbon tax through fuel regulations, which could increase the price of gas by up to 11 cents per litre.  

The CTF report shows what current fuel prices would be with a $170 per tonne carbon tax and proposed fuel regulations. The report assumes that drivers in all provinces will be required to pay a $170 per tonne carbon tax and second carbon tax. The table below highlights the costs for drivers:


Current gas price/L (Oct. 25)

Gas price/L (including $170 per tonne carbon tax)

Gas price/L (including $170 per tonne carbon tax + second carbon tax)

Total cost to fuel up minivan ($170 per tonne carbon tax + second carbon tax)

St. John’s


















































“Taxes already cost Canadians big time at the pumps and that tax bill will only grow with carbon tax hikes,” said Terrazzano. “Politicians looking to improve affordability must provide tax relief at the pumps and that starts with scrapping the carbon tax.”

You can find the CTF’s report here.