An advocate for affordable gas prices says he believes the price at the pump in Manitoba needs to drop by another 10 cents per litre.
As of Friday morning, Dan McTeague, president of Canadians for Affordable Energy, told 680 CJOB’s Connecting Winnipeg that gas prices have dropped significantly in Ontario and out west, but Manitoba hasn’t seen much movement.
“Gas stations here in Winnipeg and across the province that are charging anywhere from $1.85 to $1.89 (per litre) are making off with 25 to 30 cents a litre as a retail margin,” he said.
“That’s excessive, and it’s going to get called offside sooner or later.”
McTeague said a gas station’s wholesale price — when all federal, provincial and carbon taxes are factored in, comes out to around $1.60 per litre.
McTeague’s comments come as the federal government begins sending out the first of its quarterly Climate Action Incentive (CAI) payments to people in Manitoba, Ontario, Saskatchewan and Alberta.
The carbon tax rebates, which replace an annual credit, start with a double-payment in July (including a retroactive amount for April) and follow with additional cheques this October and in January 2023.
The rebates are designed to prevent families from being worse off overall due to the carbon price while still having an incentive to cut their carbon price costs by driving less, installing better furnaces or solar panels, or upgrading windows, doors and insulation.
The amounts vary by province based on the estimated carbon levy consumers will pay this year, with the annual payments for a family of four hitting $745 in Ontario, $832 in Manitoba, $1,079 in Alberta and $1,101 in Saskatchewan.
The payments in Saskatchewan and Alberta are higher mainly because they rely mostly on natural gas and coal for electricity while Ontario draws most of its power from nuclear and hydro, and Manitoba almost entirely from hydro.
The carbon levy applies to fossil fuels but not energy sources that are low or non-emitting.
In a statement Friday, Winnipeg MP Terry Duguid, parliamentary secretary to the minister of environment and climate change, said the carbon tax is an effective way to achieve climate goals.
“Manitobans want clean air and a healthy future for their children and grandchildren. Pollution pricing is a proven, effective, and affordable way of reducing polluting carbon emission across the province.
“By making incentive payments directly to households every quarter, we’re taking real action to fight climate change and to make life more affordable for families across Manitoba.”
The Canadian Taxpayers’ Federation (CTF), however, disagrees, and says the rebate program will actually cost Manitobans more in the long run.
“Families are still paying hundreds of dollars in carbon taxes every year even with the rebates,” said CTF director Franco Terrazzano in a release Thursday.
“The Trudeau government claims families will be better off. But the Parliamentary Budget Officer’s numbers show the government is using magic math because the carbon tax will cost the average Manitoba family $299 this year even with rebates.”
Environment Minister Steven Guilbeault says the rebates cover more than the added cost of the levy for about eight in 10 Canadian families.
The carbon price is now $50 per tonne of emissions produced, which adds 11 cents to a litre of gasoline, 13 cents to a litre of diesel and 10 cents to a cubic metre of natural gas.
The federal government expects to return more than $7 billion to Canadians from the carbon levy this year.
The levy will increase by $15 a tonne each year through to 2030, adding another 3.3 cents to a litre of gas annually.
–With files from The Canadian Press