Premiers from the prairie provinces are urging Prime Minister Justin Trudeau to suspend plans to raise the federal carbon tax in light of the surging energy costs being borne by Canadians.
“The two-year pandemic has clearly placed considerable financial stress on families and businesses, despite the unprecedented supports provided by the federal and provincial governments to date,” the premiers wrote.
“More recently, inflation levels not seen in decades have significantly increased the cost of food and transportation and other essential goods. Canadians were already feeling the pain of supply chain and other inflationary causes.”
Gas prices in Alberta averaged around $1.66 per litre on March 28, reported the Canadian Automobile Association. Saskatchewan hovered at $1.69 a litre, while Manitoba had the highest among the prairies provinces at $1.73 per litre. British Columbia has the highest average in the country at around $1.95 per litre.
The premiers said the “skyrocketing energy costs” will not drop in the short term, given the sanctions imposed on Russia over their ongoing invasion of Ukraine. Canada has imposed a barrage of sanctions on Russian officials and entities including asset freezing, export and import restrictions, and financial prohibitions.
The premiers said the war in Ukraine compounds the many other cost pressures Canadians currently face, and that government leaders “now need to provide obvious pricing relief to families and businesses being squeezed.”
“Further increases to fuel prices, through the federal carbon tax, are not appropriate policy measures at this critical juncture,” says the letter.
By 2030–31, the amount will have spiked, with Alberta experiencing a net loss averaging $2,282 per household, Saskatchewan at $1,464, Manitoba at $1,145, and Ontario at $1,461.
