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Canada Ends Federal Consumer Carbon Price, Fuel Costs Drop Nationwide

Prime Minister Mark Carney's decision to eliminate the consumer carbon price has led to immediate reductions in gas and diesel prices, while the industrial carbon price remains intact.

A person pumps fuel in Toronto after gasoline prices rose overnight on Wed., September 12, 2012.
A gas station in Newcastle, Ont. display their gasoline and diesel per litre prices on Wednesday April 1, 2025. Consumers are paying a new price on their carbon emissions starting today — $0.  THE CANADIAN PRESS/Doug Ives
Gas prices in Calgary dropped after the cancellation of the consumer carbon tax.

Overview

  • Gasoline prices in Ontario have decreased by 17 to 20 cents per litre, while diesel prices have dropped by 21.4 cents per litre following the policy change.
  • In Winnipeg, gas prices have fallen by approximately 15 cents per litre, with diesel prices decreasing by 20 to 21 cents per litre.
  • The Canada Carbon Rebate program, which offset consumer costs of the carbon price, is ending, with final payments scheduled for April 2025.
  • External factors, such as rising oil prices, seasonal demand, and refinery maintenance, may cause fuel price fluctuations in the coming months.
  • Quebec remains the only province in Canada with a carbon pricing system, operating its cap-and-trade program since 2013.