It’s the first day of the nationwide consumer carbon tax pause, and the effects are already starting to show at the pumps here in Moose Jaw. Prices began to fall early this morning, something that GasBuddy Senior Petroleum Analyst, Patrick De Haan says is a welcome change for Canadian consumers.
“It's certainly sizable savings, and the carbon tax had actually been set to go up today. Had it not been for the carbon tax pause, it's certainly good news that instead of the carbon tax, again stepping up to a higher level, we are sitting here talking about how now the price of gasoline is plummeting by, in many cases, 15 cents a litre or more.”
He notes that the drop in prices is especially well-timed for Saskatchewan, as a province dominated by agriculture, heavy industry and trucking, the accompanying drop in the price of diesel by at least 20 cents per litre will be a boon for industry players as the province continues to warm.
“As we get into warmer weather, agriculture, farmers are going to be out in the fields consuming diesel. So, it certainly comes at a very opportune time and the savings are substantial. We're going to see a huge impact. Canadians likely will save hundreds of dollars across the course of the year.”
The question now for De Haan is if the pause is made permanent once the federal election has concluded, a move that may become all the more necessary now that consumers have seen the savings first-hand.
While prices are currently dropping, it is not yet known where petroleum prices stabilize at, although De Haan says this is a time for some optimism.
“Over the next 48 hours, the full 17.6 cent carbon tax pause will be implemented, whether or not future price increases happen in a couple of days, we will be able to say the pump price would be 17.6 cents liter higher had it not been for the carbon tax pause.”
“Not only are we seeing a rollback, but we are also seeing the potential increase stopped in its tracks.”
He notes that had it not been for the pause, the carbon tax would have jumped closer to 20 cents per litre today.