The Federal carbon price on diesel is set to increase to $0.1073 per litre on April 1, 2021.

The Federal backstop carbon pollution pricing system applies in whole or in part in any province or territory that requests it or that does not have a pricing system in place that aligns with the federal benchmark stringency requirements. These are rates of fuel charge for Manitoba, New Brunswick, Ontario, Saskatchewan and Alberta. 

The Government of Canada has confirmed that the carbon pollution pricing systems in Quebec, Nova Scotia, the Northwest Territories, and British Columbia continue to meet federal benchmark stringency requirements.

Based on diesel fuel consumption in Canada and the estimated miles travelled by Canadian trucks through domestic trips (in all provinces), CTA estimates the trucking industry will pay $538 million in carbon pricing this year. By 2023 this figure will increase to $1.2 billion and by the end of the proposed carbon tax pricing schedule, increasing by $15 per tonne until 2030, will escalate to $3 billion.

At the Federal level, CTA has said they continue to ask the Federal Government to allocate all revenues generated from the commercial industry sector towards a “green truck fund” to encourage more investment in greenhouse gas-reducing equipment and technologies in the industry. They also recommend that all trucking companies in Canada and members of the supply chain continue to discuss the impact of carbon pricing with their customers so they can understand the operational realities and concerns the sector is facing due to the system.

To help educate the public and the supply chain on the impact of carbon pricing on the trucking industry, CTA prepared a document and infographic for the industry. Click here: Carbon Charge on Diesel Fuel.