Canada's Federal Fuel Charge (carbon tax) on fossil fuels increased from CAD 65/t (US$48/t) to CAD 80/t (US$59/t) on 1 April 2024, adding an extra CAD 3.3c/l (US$2.4c/l) on gasoline price (new fuel charge rate of CAD 17.61c/l or US$13c/l as of April 2024). The surcharge applies in all Canadian provinces - except for Québec, Northwest Territories, and British Columbia, where provincial or territorial systems apply - and families or residents receive "Canadian Carbon Rebates" to cushion the extra charge. The Fuel Charge rate will ramp up until reaching CAD 170/t by 2030.
In 2018, the Canadian Federal government imposed a national carbon price floor, requiring that all provinces have either a carbon tax or a cap-and trade system. The price floor was set at CAD 20/t (US$15/t) in 2019 and 2020 and increased to CAD 50/t in 2022. The federal carbon pollution pricing system has two components: a regulatory charge on fossil fuels (fuel charge), and a performance‑based system for industries (Output-Based Pricing System or OBPS). The federal system can apply in whole or in part in a jurisdiction. The federal systems applies in full in Manitoba, Prince Edward Island, Yukon and Nunavut, while provincial systems apply in Québec, Northwest Territories, and British Columbia. Other provinces - namely Alberta, Saskatchewan, Ontario, New Brunswick, Newfoundland and Labrador, and Nova Scotia - have mixed schemes, with the federal fuel charge and provincial systems for industry.
Interested in Global Energy Research?
Enerdata's premium online information service provides up-to-date market reports on 110+ countries. The reports include valuable market data and analysis as well as a daily newsfeed, curated by our energy analysts, on the oil, gas, coal and power markets.
This user-friendly tool gives you the essentials about the domestic markets of your concern, including market structure, organisation, actors, projects and business perspectives.