Backgrounder: Fuel Charge Rates in Listed Provinces and Territories

Backgrounder

Fuel Charge Rates

The fuel charge rates reflect a carbon pollution price of $20 per tonne of carbon dioxide equivalent (CO2e) in 2019, rising by $10 per tonne annually to $50 per tonne in 2022. The rates are based on global warming potential factors and emission factors used by Environment and Climate Change Canada to report Canada's emissions to the United Nations Framework Convention on Climate Change. Applying the fuel charge at higher rates over time will help to reduce greenhouse gas emissions and support clean growth, while keeping costs low for Canadians and Canadian businesses. It will send a signal to markets and provide an incentive to reduce energy use through conservation and efficiency measures.

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

Rates for Provinces

The following table presents fuel charge rates that will apply in Ontario, New Brunswick, Manitoba and Saskatchewan. The rates will become effective as of April 2019, with future increases effective as of April of the year noted in the table.

Rates for Territories

The following table presents fuel charge rates that will apply in Yukon and Nunavut. The rates will become effective as of July 2019, with future increases effective as of April of the year noted in the table. The July 2019 implementation date for Yukon and Nunavut recognizes that Northwest Territories will have a carbon pollution pricing system in place as of that date. This approach seeks to align the implementation date of carbon pollution pricing across all territories.

As part of the Pan-Canadian Framework on Clean Growth and Climate Change, the Federal Carbon Pollution Pricing Benchmark noted that the federal government would work with the territories to address their unique circumstances, including the high cost of living, challenges with food security and emerging economies. Reflecting the high-reliance of the territories on air transportation, the rates for aviation gasoline and aviation turbo fuel are set to $0 for listed territories.



Federal Fuel Charge Rates for Listed Provinces
Type Unit
($ per)
Apri1 2019
($20/tonne)
April 2020
($30/tonne)
April 2021
($40/tonne)
April 2022
($50/tonne)
Aviation gasoline litre 0.0498 0.0747 0.0995 0.1244
Aviation turbo fuel litre 0.0516 0.0775 0.1033 0.1291
Butane litre 0.0356 0.0534 0.0712 0.0890
Ethane litre 0.0204 0.0306 0.0408 0.0509
Gas liquids litre 0.0333 0.0499 0.0666 0.0832
Gasoline litre 0.0442 0.0663 0.0884 0.1105
Heavy fuel oil litre 0.0637 0.0956 0.1275 0.1593
Kerosene litre 0.0516 0.0775 0.1033 0.1291
Light fuel oil litre 0.0537 0.0805 0.1073 0.1341
Methanol litre 0.0220 0.0329 0.0439 0.0549
Naphtha litre 0.0451 0.0676 0.0902 0.1127
Petroleum coke litre 0.0767 0.1151 0.1535 0.1919
Pentanes plus litre 0.0356 0.0534 0.0712 0.0890
Propane litre 0.0310 0.0464 0.0619 0.0774
Coke oven gas cubic metre 0.0140 0.0210 0.0280 0.0350
Marketable natural gas cubic metre 0.0391 0.0587 0.0783 0.0979
Non-marketable natural gas cubic metre 0.0517 0.0776 0.1034 0.1293
Still gas cubic metre 0.0540 0.0810 0.1080 0.1350
Coke tonne 63.59 95.39 127.19 158.99
High heat value coal tonne 45.03 67.55 90.07 112.58
Low heat value coal tonne 35.45 53.17 70.90 88.62
Combustible waste tonne 39.95 59.92 79.89 99.87
Federal Fuel Charge Rates for Listed Territories
Type Unit
($ per)
July 2019
($20/tonne)
April 2020
($30/tonne)
April 2021
($40/tonne)
April 2022
($50/tonne)
Aviation gasoline litre 0.0 0.0 0.0 0.0
Aviation turbo fuel litre 0.0 0.0 0.0 0.0
Butane litre 0.0356 0.0534 0.0712 0.0890
Ethane litre 0.0204 0.0306 0.0408 0.0509
Gas liquids litre 0.0333 0.0499 0.0666 0.0832
Gasoline litre 0.0442 0.0663 0.0884 0.1105
Heavy fuel oil litre 0.0637 0.0956 0.1275 0.1593
Kerosene litre 0.0516 0.0775 0.1033 0.1291
Light fuel oil litre 0.0537 0.0805 0.1073 0.1341
Methanol litre 0.0220 0.0329 0.0439 0.0549
Naphtha litre 0.0451 0.0676 0.0902 0.1127
Petroleum coke litre 0.0767 0.1151 0.1535 0.1919
Pentanes plus litre 0.0356 0.0534 0.0712 0.0890
Propane litre 0.0310 0.0464 0.0619 0.0774
Coke oven gas cubic metre 0.0140 0.0210 0.0280 0.0350
Marketable natural gas cubic metre 0.0391 0.0587 0.0783 0.0979
Non-marketable natural gas cubic metre 0.0517 0.0776 0.1034 0.1293
Still gas cubic metre 0.0540 0.0810 0.1080 0.1350
Coke tonne 63.59 95.39 127.19 158.99
High heat value coal tonne 45.03 67.55 90.07 112.58
Low heat value coal tonne 35.45 53.17 70.90 88.62
Combustible waste tonne 39.95 59.92 79.89 99.87

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