The premiers of the Atlantic provinces are asking the federal government to delay the implementation of its new regulations on fuel, saying it will increase inflation and that their jurisdictions are disproportionately affected.
“These increases will further add to inflationary pressures that will increase the costs of other goods imported to the region,” they added, in reference to the combined rise of the carbon tax.
The Clean Fuel Regulations (CFR) seek to limit the carbon intensity in gasoline and diesel, as part of the government’s push to reach net-zero emissions by 2050.
The PBO also says it will have a “broadly regressive” effect by impacting households with lower income.
The watchdog’s analysis says the provinces that will be the most affected by the household cost of the CFR are Saskatchewan, Alberta, and Newfoundland and Labrador. Other Atlantic provinces are also more affected than Quebec, Ontario, and British Columbia.
PBO Yves Giroux says this “reflects the higher fossil fuel intensity of their economies.”
The statement from the premiers came the day after holding a virtual meeting with Guilbeault.
They said they were “disappointed” with the lack of clarity provided on the impact the CFR will have on fuel prices and fuel supplies, “despite acknowledging there will be a disproportionate impact to Atlantic Canadians.”
In a statement emailed to The Epoch Times, Guilbeault said the increased profits made by refineries in the region means they don’t have to offload the cost of the new regulations onto consumers.
“Refineries in Atlantic Canada are reaping whopping new profits and have the ability to be part of the solution,” he says.
“Under the Clean Fuel Regulations, oil companies and refiners have the time and the ability to invest to update their operations to meet the very small, incremental costs that the Clean Fuel Regulations require. There is simply no reason that they need to push costs onto consumers on July 1.”
