New federal regulations to reduce greenhouse gas emissions from gasoline and diesel will cost Canadians up to 13 cents more per liter at the pump by 2030.
An impact analysis of the Clean Fuel Regulations published Wednesday estimates they will reduce about 18 million tons of greenhouse gas emissions by 2030, or five to six percent of what Canada must eliminate to meet its current targets for that year.
It will cost between $22.6 billion and $46.6 billion for refineries and other fuel suppliers to meet, or an average of about $151 per ton of emissions reduced.
The impact will cut $9 billion from Canada’s GDP and increase gasoline prices by six to 13 cents a liter by 2030, when the full scope of the regulations is in place.
That can cost between $76 and $174 per vehicle, or up to $301 per household.
According to the analysis, costs will be disproportionate for lower-income families, single mothers and seniors, who are more vulnerable to energy cost fluctuations and least likely to afford alternatives such as electric vehicles.
This report from The Canadian Press was first published on June 30, 2022.