Québec to Introduce Carbon Tax on Energy Companies
7 June 2007
Globe and Mail. The Canadian province of Québec will introduce Canada’s first carbon tax this fall. As of 1 Oct, all energy companies will be required to pay a special tax based on the greenhouse gas emissions they produce.
The money will flow into the Green Fund, established to support efforts to meet emission targets set for 2012 in the Kyoto Protocol (6% below 1990 levels).
Oil companies will be required to pay 0.008 cents for each litre of gasoline distributed in Quebec and 0.00938 cents for each litre of diesel fuel. The tax is expected to generate C$69-million a year from gasoline sales, C$36-million from diesel fuel and C$43-million from heating oil.
The average price of regular grade gasoline in the province is currently C$1.138, according to NR Canada. Those figures work out to an average price for regular grade gasoline or US$4.308 per gallon. The carbon tax would be US$0.029 per gallon of gasoline and $0.034 per gallon of diesel.
The government has no guarantees that the oil companies won’t pass the carbon tax along to consumers.
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