

Codi Wilson, CP24.com





Fuel prices are up at gas stations across Ontario as the provincial government’s new cap-and-trade program comes into effect.

The price of gas at many GTA stations this morning rang in at about $1.16 cents per litre.

“The cap-and-trade system is really a tax on anybody who emits C02. So when you are producing, manufacturing, depending on how much C02 you produce, there is a level of taxation,” Dan McTeague, Gasbuddy.com senior petroleum analyst, told CP24 Monday morning.

“Right now it is about $14 to $16 per megaton. So what it really means is that that works out to about 4.4 cents per litre on gas (and) it works out to about 6.1 cents for diesel.”

McTeague noted that it isn’t just motorists that will feel the impact of the new tax.

“All forms of energy are now going to be taxed. That means that 2017 is going to be a lot more expensive, it is going to affect and touch everybody,” he said.

“When you think diesel is going up, then of course groceries and other things are going to be affected as well.”

Home heating is expected to cost $6.70 more a month under the new program.

Ontario’s cap-and-trade program and Alberta’s carbon tax both came into effect on Jan. 1.

The federal government has said that all Canadian provinces will have to introduce some type of carbon pricing program in an effort to slow climate change.

British Columbia has had a carbon tax in place since 2008 and Quebec’s cap-and-trade program was implemented in 2013.

In a statement released by the Ministry of Environment and Climate Change Monday, spokesperson David Mullock said carbon pricing is “now the reality” across the country.

“Ontario is moving forward with the Climate Change Action Plan, which includes cap and trade, because it will reduce greenhouse gas pollution at the lowest possible cost to families and businesses,” the statement read.

“The investments in the Action Plan will help families and businesses reduce costs and make the switch to non-polluting choices easier and less expensive.”

In a series of tweets sent out Monday, Ontario PC Party leader Patrick Brown called the cap-and-trade program, which is estimated to raise $1.9 billion per year for the province, a “cash grab.”

“Sadly, according to (Auditor General) Bonnie Lysyk Wynne's plan will not meaningfully reduce Ontario’s greenhouse gas emissions in Ontario,” he said in one of the tweets.

“The (Ontario PC Party) would dismantle Cap & Trade. It is a $2 billion annual (government) cash grab that doesn’t actually reduce emissions in Ontario," another post read.

The @OntarioPCParty would dismantle Cap & Trade. It is a $2 billion annual gov cash grab that doesn't actually reduce emissions in Ontario. — Patrick Brown (@brownbarrie) January 2, 2017

Sadly, according to AG Bonnie Lysyk Wynne's plan will not meaningfully reduce Ontario’s greenhouse gas emissions in Ontario 4/4 #onpoli — Patrick Brown (@brownbarrie) January 2, 2017

-With files from The Canadian Press