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“The carbon tax will start at a relatively low price before escalating up over the next couple of years,” said ATCO Energy president Marshall Wilmot.

The federal tax will only apply to consumers. The province’s industrial carbon tax, which sets a $30-per-tonne price, was given the green light from the federal government earlier this month.

Nuts and bolts: How the tax will affect your bottom line

When the federal carbon tax comes into effect, it will cost $20 per tonne of carbon dioxide equivalent.

In more concrete terms, that means drivers will pay 4.4 more cents per litre in the new year. That means the driver of a Toyota Corolla will pay $2.21 more to fill their tank, while a trip to the pump will cost the owner of a 2019 Ford F-150 an extra $6.02.

Initially, a tax of $1.05 per gigajoule will apply for natural gas. On April 1, the tax will jump to $30 per tonne. By 2022, it’s set to rise to $50 per tonne.

“Alberta households typically average about 120 gigajoules of natural gas in a year, but it can be higher for rural customers who can be as high as 270 gigajoules a year,” Wilmot said. That means that in 2020, an average household will pay about $173 more for natural gas, while a high-using rural household could pay $390 more.

The federal government will offer rebates to eligible taxpayers, though. According to the Government of Canada, the average Alberta household will receive an $880 rebate at the end of the first 15 months of the carbon tax, if they claim it on their 2020 tax return. A further 10 per cent can be claimed for those living outside of census metropolitan areas, a decision meant to recognize higher energy needs.