Soon it’s going to be more expensive to fill up your vehicle in BC, thanks to the carbon tax.
Starting April 1, the carbon tax will increase by about three more cents per litre of gasoline. That brings the total amount of carbon tax per litre to 17.61 cents per litre, up from the 2023 tax of 14.31 cents.
Diesel drivers will pay even more, with 20.74 cents per litre.
Overall the increase is $80/tonne of Co2, up from $65 per tonne, and the expected profit from that increase alone is forecast to be $229 million.
This isn’t the first time we’ve reported on this increase.
“This means that every litre of gas will rise by 3 cents for every $15 per tonne increase each year… until it reaches $170 in 2030 – aligning with federal requirements,” BC’s Ministry of Finance told Daily Hive last year about the predicted three-time increase over the next seven years.
Bad news for many drivers, as it will rise again next year.
The revenues go towards the Climate Action Tax Credit, which is available to British Columbians with lower or moderate incomes, and as the tax increases, so will the amount available in the credit. The revenue also goes to the CleanBC plan, which is aimed at rebates for zero-emission vehicles and top-ups for energy-efficiency improvements like heat pumps.
With the increase this year, the available tax credits are also increasing. The benefits for an eligible adult will be about $504 for 2024/2025. Those with children are eligible for more, about $126. Those tax credit amounts will jump again in the following year.
“Government will continue to monitor revenues from the new carbon pricing framework on an annual basis and prioritize directing incremental revenues to relief for people through the climate action tax credit,” the BC Budget and Fiscal Plan reads in part.
The Climate Action Tax Credit enhancements are forecast to be $687 million.