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Québec to Introduce Carbon Tax on Energy Companies

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.



What a joke. "The carbon tax would be US$0.029 per gallon of gasoline and $0.034 per gallon of diesel." I mean if it is that little then what is the point. Certainly it is not enough to change any behavior. It also cost money to administrate such a tax. But mayby it is tactical. Once it is there it will be easy to raise it gradually so that few will notice.


Such taxes should start out small and progress in a gradual and predictable (and revenue neutral) manner. I think the aim is to change behaviour, not punish past decisions. I'm amazed that a minority government would have the guts to bring in such a measure.


Why revenue neutral? What's wrong with raising revenue through this form of taxation?


Why not 50 cents a liter? Canada did not want to join gw in his war for oil and here is a way to minimize imports of foriegn oil!This is the only way to cut our oil dependence.People in the U.S.and Canada stubbornly continue to use big trucks as commuter vehicles even with petrol at $1.00 a liter,Maybe if it was $2.00 a liter they would finally come around.

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