Islanders brace for July fuel increases, though rebates also on way
Officials say average household will get rebates worth more than the extra costs
Prince Edward Islanders will be hit with some new carbon fees when they fill up their oil tanks or buy fuel for their vehicles and barbecues as of this Saturday.
Heating oil will go up 17 cents a litre on July 1, gas and diesel will rise by around 4 cents, and propane will increase 10 cents.
It's part of new federally mandated prices on carbon emissions that P.E.I. Premier Dennis King has said will spike home heating fuel prices to "an all-time high level."
"Ludicrous" is how Islander Janet Vanderkay describes the increases, especially those to furnace oil.
"Honestly, I don't know how they're expecting us to survive," she said.
"I realize they're trying to do good," she said of the push to reduce the environmental footprint, but added: "People are going to be cold and that's all there is to it — or homeless."
Myranda Newson also said it would have a negative affect on her household.
"It's good to help the environment — you know, switch people over to sustainable energy — but it doesn't help with the cost of living for people that can't afford it.
"It's going to make a difference."
At the same time, though, Islanders will also receive federal carbon rebate cheques starting next month.
In a briefing with the media Wednesday, a federal spokesperson said a P.E.I. family of four would get three equal payments of $240 this fiscal year — and said it would amount to more than they are expected to be shelling out for more-expensive petroleum products.
The payments will be sent out in July, October and January, as long as individuals have filed their taxes for 2022.
2nd federal cost factor in wings
There are other increases coming related to new Clean Fuel Regulations that will require refineries to reduce the emissions they generate related to production, transportation and consumption.
Refineries will have a year to comply and become more efficient, but some of those costs are also expected to be passed on to the consumer, likely around 10 cents more per litre by 2030.
Environment and Climate Change Canada told CBC News earlier this month that the new regulations will have a "minimal" impact on gas prices for the next few years.
The federal department is estimating that by 2030, prices at the pumps will go up between six and 13 cents per litre of gasoline, depending on refineries. That is on top of the 27-cents-a-litre carbon tax that will be added to gasoline by 2030.
The increases come at a time when car makers are boosting production of electric and hybrid vehicles that should contribute to an overall decrease in the use of gas and diesel.
Groups plan for bigger bills
For now, though, many are still relying on traditional combustion engines — not to mention furnaces.
The Salvation Army in Charlottetown operates a number of buildings that are heated with furnace oil, including its church and offices, a men's shelter and transitional housing units.
Lt. John Burton said donations to the church aren't spent on operational costs, so the organization must budget its resources carefully.
"We're going to have to tighten our belts and have to be a little more efficient with our buildings for sure," he said.
The group also runs a home heating program, which helps people of limited means with furnace oil costs.
We do expect to see more people coming in... There's so much need.— Lt. John Burton
"We do expect to see more people coming in," said Burton.
He said they sometimes supply gas cards in emergency situations, such as when someone with nothing in the tank has to travel for a medical appointment.
"There's so much need," he said.
Meanwhile, the Island Regulatory and Appeals Commission has said it is undertaking a review of the amount of profit per litre that petroleum retailers and wholesalers on P.E.I. currently receive, looking at what "benchmark price" should be used for IRAC's weekly price adjustments.
The commission is inviting the public and industry to comment, with a deadline for feedback of July 17.
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