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The Federal Carbon Tax – What You Need to Know

The Federal Carbon Tax – What You Need to Know

On April 1, 2019, the Federal Government implemented a Carbon Tax on fuel in the provinces of Saskatchewan, Manitoba, New Brunswick, and Ontario. The Carbon Tax is set to change each year on the 1st of April.

In 2020, the Federal Carbon Tax came into effect in Alberta, and New Brunswick introduced its own Provincial Carbon Tax, exempting the province from the Federal Tax. British Columbia has its own provincial tax, also exempting the province from the Federal Carbon Tax. 

In Ontario, Saskatchewan, Manitoba, and Alberta, the Federal Carbon Tax outlined below are shown as a separate line item on statements, invoices and delivery tickets for McDougall Energy customers.

Why is there a Carbon Tax?

Putting a price on carbon pollution is considered to be an efficient way to reduce greenhouse gas (GHG) emissions. Pricing pollution is intended to drive innovative solutions to provide low-carbon choices for consumers and businesses.

Read more about the Government of Canada's pollution pricing strategy and details on the Fuel Charge.

How much is it?

In 2019, the fuel charge rates reflected a carbon pollution price of $20 per tonne of carbon dioxide, rising by $10 per tonne annually to $50 per tonne in 2022.

In 2021, this amounts to a total 8.84 cents per litre (cpl) on gasoline, 6.19 cpl on propane, 10.73 cpl on diesel and home heating fuel, 9.95 cpl aviation gasoline, and 10.33 cpl turbo fuel.

Visit the Government of Canada for a listing of all the fuel charge rates.

How is the cost calculated?

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.

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

Am I eligible for exemption?

Some businesses are eligible for an exemption certificate. Click here for details on who is eligible and how to register.

Who do I contact at McDougall to provide my exemption number?

Please contact our Credit Department at creditapps@mcdougallenergy.com or 1-877-849-2588.

Do I need to register my business?

Some companies may be required or permitted to register with the CRA under the Greenhouse Gas Pollution Pricing ActClick here for more information on who needs to apply and how to do so.

Who do I contact if I have questions about my bill from McDougall Energy?

Please contact our Credit Department at creditapps@mcdougallenergy.com or 1-877-849-2588.

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