20 ¢ more liter in Quebec than in Ontario?

The facts – 20 ¢ more liter quebec

There is no doubt that on average-I come back immediately on this: on average -. Consequently, prices at the pump are around 20 ¢ higher in Quebec. Moreover, This is indicated by the Gasbuddy site quoted by M. Similarly, Duhaime: 150.1 ¢/L here against 132.8 ¢/L with our neighbors, dated Thursday. Similarly, And there is essentially the same information on the Statistics Canada site for last June.

It is also true to say that the abolition of carbon tax. In addition, which added around 18 ¢/L, suddenly lowered the price of about twenty hundred (or more) at the end of March, as indicated by several sources. Furthermore, We also see it very well on this graph of Gasbuddy showing the average prices at the pump in. Therefore, the city of Ottawa in recent 20 ¢ more liter quebec months.

That said, contrary to what Mr. Duhaime suggests, Quebec has never paid for “carbon tax” strictly speaking. The province was exempt from this because it participated in the system of capping. exchange of greenhouse gas emissions (SPEDE). This consists in charging rights certain industrial issuers, including refineries, which then pass the bill to their consumers.

The SPEDE has not been abolished at the same time as the federal carbon 20 ¢ more liter quebec tax. is still used, but it does not add 18 ¢/L to the price of gasoline. Rather, we are talking about 8 to 9 ¢/L, according to an environment table. We can well say that this is a “form of carbon tax” – it defends itself -. but it is obvious that even by leaving Quebec from the Spede, as Mr. Duhaime seems to want to do so. the average prices at the pump would not automatically descend to the Ontario levels.

As Simon Bourassa. CAA-Québec spokesperson indicates, there is also “the provincial fuel tax [qui] is not of the same order. We talk about some 19 ¢ in Quebec against 9 ¢ in Ontario ”. The gap between the excise taxes of the two provinces therefore explains a good part of the price differences.

20 ¢ more liter quebec

Variations locales

But there 20 ¢ more liter quebec is more. Provincial averages hide significant regional variations.

Thus, the Quebec average is pulled up by prices at the Pump in Montreal – 159.4 ¢/L date yesterday. Recall that a special tax of 3 ¢/LY is imposed by the City to finance public transport.

But “in comparable markets like Ottawa and Gatineau, there are similar prices currently in several service stations,” said Bourassa. In Outaouais, where several retailers clearly feel the pressure of Ontario prices, the liter usually was exchanged yesterday at 135.6 ¢, according to the CAA-Québec site. This is actually comparable to the Ottawa average. where prices oscillated between 132 and 138 ¢/L in July, according to the City News site.

Note in this regard, however, that provincial taxes are reduced in border regions.

Let us also add that some retailers from Saguenay-Lac-St-Jean. where a price war seems to be 20 ¢ more liter quebec raging, even display prices below 130 ¢/L these days, according to Gasbuddy.

According to a recent document from the energy management. part of the explanation is due to the beneficiary margins of retailers who are lower in these two regions-7 ¢/L in Saguenay and 9 ¢/L in Outaouais, while they generally revolve around 12-15 ¢/L elsewhere in Quebec.

In short, the full portrait is clearly more complex than a simple question of “carbon tax”.

Verdict

Simplified. Yes. petrol is around 20 ¢/L cheaper in Ontario, and yes, the abolition of the carbon tax has dropped petrol prices in the rest of Canada. But that only explains part of the gap. Differences between the provincial taxes (the carbon tax was federal). the profit margins of the retailers also come into play.

Precision : An earlier version of this text has 20 ¢ more liter quebec been modified to specify that provincial taxes are reduced in border areas.