P.E.I.'s gas prices are going to jump in July. But by how much, exactly? - Action News
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PEI

P.E.I.'s gas prices are going to jump in July. But by how much, exactly?

New federal Clean Fuel Regulations take effect in July, and there's much political sparring on P.E.I. around how much this is going to cost people at the pumps.

King balancing the need to go green with the fact that 'we live in the here and now'

Some drivers in Saskatchewan say they're looking to reduce their gas consumption as prices continue to rise. Images of gas pumps and prices on May 10, 2022 in Regina, Sask.
'IRAC has told me through their process it could be as high as 8-10 cents per litre,' says P.E.I. Premier Dennis King. (Kirk Fraser/CBC)

Gas prices are expected to jump this summer on Prince Edward Island, buthow much you'll pay at the pump is still unclear.

New Clean Fuel Regulations from the federal government take effect in July and there's been plenty of political sparring about exactlyhow much this is going to cost people.

During Tuesday's Question Period at the P.E.I. legislature, Progressive Conservative backbencher Jamie Fox pressed the premier foranswers, given that's the same month Islanders will seerising heating oil, propane,gas and diesel pricesdue to the federal carbon tax.

King said that even after consulting with the Island Regulatory and Appeals Commission (IRAC), it's not clear how much more Islanders will pay for gas as a result of the Clean Fuel Regulations.

"It could be as high as 8-10 cents per litre," he said.

The premier noted that he hasn't spoken yet to federal Minister of Environment Steven Guilbeault.

"We've written him, as chair of the Council of Atlantic Premiers, but he hasn't gotten back to us yet. We're trying to work to get a meeting as early as tomorrow on this."

Credit-based system

In a further attempt to reduce Canada's carbon emissions by 2030, the Clean Fuel Regulations will requireproducers or importers of gas or diesel to gradually reduce the carbon intensity of the fuels they sell.

Basically, Ottawa wants fewer emissions and cleaner fuel from producerslike the Maritime'ssole refinery, based in Saint John, N.B. The Clean Fuel Regulations aren't atax, but will offer incentives through a credit systemfor fuel producers or importers to adapt clean technologies.

The federal Parliamentary Budget Office (PBO)released analysis on May 18 estimating that Prince Edward Islanders could see higher costs passed onto them as a resultof the new system $569 more a year on average by the time 2030 rolls around.

The PBO called the Clean Fuel Regulations a "broadly regressive" policy in regards to household disposable income and said once the regulations are in effect, the price of gas and diesel could increase by as much as 17 cents per litre in the next seven years.

Environment minister reacts to PBOs analysis of the Clean Fuel Regulations

1 year ago
Duration 1:03
While speaking with reporters about the impacts of the Clean Fuel Regulations on Canadian drivers, Minister of Environment Steven Guilbeault says the government is working to ensure the costs are minimum to Canadians and added the Parliamentary Budget Officers analysis of the regulations doesnt even mention the effects of climate change.

Guilbeault refuted the budget watchdog's report on the regulations, and some political parties criticized the PBO because they saidtheanalysisignoresthe cost of inaction onclimate change.

Seeking 'firm grip on this'

After Question Period Tuesday, King told CBC News that IRAC's estimate of 8-10 cents per litre isn't official, and all Atlantic premiers want Guilbeaultto lay out what the impact will be.

"The last thing we need, dealing with everything we've been dealing with from an economic standpoint, is to see further increase at the pumps for Islanders or Atlantic Canadians," he said. "I'm willing to see what his numbers are, and to make sure we have a firm grip on this."

King said Prince Edward Island wants to bepart of the larger movement to reduce carbon emissions, but the weight of federal policies can be felt harder in places like P.E.I. where the cost of living has soared due in large part to the cost of importing goods from the rest of Canada.

Premier Dennis King standing in front of a backdrop at the P.E.I. Legislature.
Premier Dennis King says he wants to arrange a meeting in Ottawa with the four Atlantic premiers, Prime Minister Justin Trudeau and the federal minister of environment present 'to bring this to the forefront.' (Ken Linton/CBC)

"While we want to be leaders and do our part in the reduction of carbon and making our province cleaner, we also have to realize that we live in the here and now," King said.

"We're already bearing what many would say, me included, is an unbearable cost in the grocery store and at the gas pump."

From here, King said he wants "to bring this to the forefront" by arranging ameeting in Ottawa that would include the four Atlantic premiers, Guilbeaultand Prime Minister JustinTrudeau.

"This isn't something that we think is good timing, in terms of putting the price of the pump up," he said. "Our region has been hit hard ... we don't think we can bear any higher costs here."