Fuel Charge Rates for Listed Provinces and Territories for 2023 to 2030

From: Department of Finance Canada

Backgrounder

The Government of Canada’s approach to pricing pollution gives provinces and territories the flexibility to implement the type of system that makes sense for their circumstances, as long as those systems align with minimum national stringency standards, or ‘benchmark’ criteria. By putting a specific price on carbon pollution, the government is giving Canadian businesses certainty and a clear incentive to move towards a net-zero economy, positioning Canada as a leader in the green transition.

A province or territory can decide to voluntarily adopt the federal pricing system. If a province or territory decides not to price carbon pollution or proposes a system that does not meet the minimum national stringency standards, that jurisdiction is subject to the federal pricing system to ensure there is an appropriate price on carbon pollution across Canada.

The federal system has two components: a regulatory charge on fossil fuels (“fuel charge”) and a regulatory system for large industry, known as the output-based pricing system. One or both components also apply in provinces and territories that do not meet the federal benchmark. Provinces and territories where the federal fuel charge applies, whether voluntarily or not, are listed below.

Fuel Charge Rates

The fuel charge rates reflect a carbon pollution price of $65 per tonne of carbon dioxide equivalent (CO2e) in 2023 (the price currently reaches $50 per tonne in 2022), which will rise by $15 per tonne annually to reach $170 per tonne in 2030. These rates are based on global warming factors and emissions factors used by Environment and Climate Change Canada to report Canada’s emissions to the United Nations Framework Convention on Climate Change. Rate changes come into effect on April 1 of each year listed in the table.

The rates for gasoline and light fuel oil continue to take into account the average renewable content of these fuels.

Rates for Listed Provinces

Table 1 presents fuel charge rates that would apply in listed provinces – currently Ontario, Manitoba, Saskatchewan and Alberta. These rates would become effective as of April 2023, with future increases effective as of April of the year noted in the table.

Rates for Listed Territories

Table 2 presents fuel charge rates that would apply in listed territories – currently Yukon and Nunavut. These rates would become effective as of April 2023, with future increases effective as of April of the year noted in the table. Reflecting the high reliance of the territories on air transportation, the rates for aviation gasoline and aviation turbo fuel continue to be set to $0 for listed territories. This follows from the previous commitment as part of the Pan-Canadian Framework on Clean Growth and Climate Change to work with the territories to address their unique circumstances, including the high cost of living, challenges with food security and emerging economies.

Table 1

Federal Fuel Charge Rates for Listed Provinces

Fuel Unit

$ per

2023

($65)

2024

($80)

2025

($95)

2026

($110)

2027

($125)

2028

($140)

2029

($155)

2030

($170)

Aviation gasolinelitre0.15920.19590.23260.26940.30610.34280.37950.4163
Aviation turbo fuellitre0.16780.20650.24530.28400.32270.36140.40010.4389
Butanelitre0.11570.14240.16910.19580.22250.24920.27590.3026
Ethanelitre0.06620.08150.09680.11210.12730.14260.15790.1732
Gas liquidslitre0.10810.13310.15810.18300.20800.23290.25790.2828
Gasolinelitre0.14310.17610.20910.24220.27520.30820.34120.3743
Heavy fuel oillitre0.20720.25500.30280.35060.39840.44620.49410.5419
Kerosenelitre0.16780.20650.24530.28400.32270.36140.40010.4389
Light fuel oillitre0.17380.21390.25400.29410.33420.37430.41440.4545
Methanollitre0.07140.08780.10430.12080.13730.15370.17020.1867
Naphthalitre0.14650.18030.21420.24800.28180.31560.34940.3832
Petroleum cokelitre0.24520.30180.35840.41490.47150.52810.58470.6413
Pentanes pluslitre0.11570.14240.16910.19580.22250.24920.27590.3026
Propanelitre0.10060.12380.14700.17030.19350.21670.23990.2631
Coke oven gascubic metre0.04550.05600.06650.07700.08750.09800.10850.1190
Marketable natural gascubic metre0.12390.15250.18110.20970.23830.26690.29540.3240
Non-marketable natural gascubic metre0.16540.20350.24170.27990.31800.35620.39440.4325
Still gascubic metre0.13960.17180.20400.23620.26840.30060.33280.3650
Coketonne206.68254.38302.07349.77397.46445.16492.86540.55
High heat value coaltonne145.02178.48211.95245.41278.88312.35345.81379.28
Low heat value coaltonne115.21141.80168.38194.97221.56248.14274.73301.31
Combustible wastetonne129.82159.78189.74219.70249.66279.62309.58339.54
Table 2

Federal Fuel Charge Rates for Listed Territories

Fuel Unit

$ per

2023

($65)

2024

($80)

2025

($95)

2026

($110)

2027

($125)

2028

($140)

2029

($155)

2030

($170)

Aviation gasolinelitre0.00.00.00.00.00.00.00.0
Aviation turbo fuellitre0.00.00.00.00.00.00.00.0
Butanelitre0.11570.14240.16910.19580.22250.24920.27590.3026
Ethanelitre0.06620.08150.09680.11210.12730.14260.15790.1732
Gas liquidslitre0.10810.13310.15810.18300.20800.23290.25790.2828
Gasolinelitre0.14310.17610.20910.24220.27520.30820.34120.3743
Heavy fuel oillitre0.20720.25500.30280.35060.39840.44620.49410.5419
Kerosenelitre0.16780.20650.24530.28400.32270.36140.40010.4389
Light fuel oillitre0.17380.21390.25400.29410.33420.37430.41440.4545
Methanollitre0.07140.08780.10430.12080.13730.15370.17020.1867
Naphthalitre0.14650.18030.21420.24800.28180.31560.34940.3832
Petroleum cokelitre0.24520.30180.35840.41490.47150.52810.58470.6413
Pentanes pluslitre0.11570.14240.16910.19580.22250.24920.27590.3026
Propanelitre0.10060.12380.14700.17030.19350.21670.23990.2631
Coke oven gascubic metre0.04550.05600.06650.07700.08750.09800.10850.1190
Marketable natural gascubic metre0.12390.15250.18110.20970.23830.26690.29540.3240
Non-marketable natural gascubic metre0.16540.20350.24170.27990.31800.35620.39440.4325
Still gascubic metre0.13960.17180.20400.23620.26840.30060.33280.3650
Coketonne206.68254.38302.07349.77397.46445.16492.86540.55
High heat value coaltonne145.02178.48211.95245.41278.88312.35345.81379.28
Low heat value coaltonne115.21141.80168.38194.97221.56248.14274.73301.31
Combustible wastetonne129.82159.78189.74219.70249.66279.62309.58339.54

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