Without taxes, the price of gas per litre today would be sitting at 92 cents
Hardworking taxpayers are facing record-high gas prices, and politicians are the culprits driving up the bills.
In Ontario, up to 38 per cent of the price of gas that we are charged at the pumps comes from taxes, according to a report released by the Canadian Taxpayers Federation.
And that percentage is only set to get higher with new fuel taxes on the horizon.
At $1.41 per litre last week, gas prices hit their highest levels in over seven years.
Let’s break down the tax bill of a single litre of gas today: Ontario drivers pay 8.8 cents for the carbon tax; 14.7 cents for provincial gas taxes; 10 cents for federal gas taxes; 9.6 cents for provincial sales taxes; and six cents in federal sales taxes.
That means that more than 49 cents paid on each litre of gas is taxes. Without taxes, the price of gas per litre today would be sitting at 92 cents.
When was the last time you were able to fill up your gas tank for less than a dollar per litre?
The scary thing is that these high gas prices will seem like a distant and fond memory if Prime Minister Justin Trudeau is able to implement the rest of his carbon tax agenda.
Right now, carbon taxes are sitting at $40 per tonne, which raises gas prices by 8.8 cents per litre. But Trudeau wants to raise the carbon tax to $170 per tonne by 2030.
What would that mean for gas prices? Carbon taxes would be adding 37.4 cents per litre.
If the Trudeau carbon tax were fully implemented today, you would be paying $1.70 per litre.
And that’s just with Trudeau’s first carbon tax.
The Trudeau Liberals are planning to implement a second carbon tax. This new carbon tax is a fuel standard tucked into government fuel regulations that makes gasoline and diesel cost more.
That requirement alone will add roughly another 11 cents per litre to gas prices in Ontario.
Count up all the existing and future taxes, and drivers are looking at gas prices of $1.81 per litre if we follow the Trudeau plan.
With a cost of 48 cents per litre from these two carbon taxes, a family filling up their minivan will be paying an extra $36 at the pumps in carbon taxes.
Do you have that kind of extra money just lying around?
There have been countless news stories highlighting the fact that half of Canadian households are just $200 from not being able to cover their bills.
If a suburban Ontario family – let’s call them the Smiths – have to fill up their minivan once a week, these carbon taxes will make them pay an extra $144 each month.
And if the Smiths happen to be one of the millions of Canadian families who are just $200 away from not being able to pay their bills, all of a sudden that number drops to $56.
Are any of our leading politicians promising relief for the Smith family at the pumps?
Unfortunately, the answer is no.
The Liberals, NDP, Greens, and, yes, the Conservatives have now all embraced carbon taxes, which are deliberately designed to increase your gas bill.
Conservative leader Erin O’Toole has said that his carbon tax will be lower than Trudeau’s version. O’Toole also promised Canadians that he would never embrace carbon taxes and changed his mind. Plan your gas budget accordingly.
All of the major party leaders claim that they have the best plan to get today’s high cost of living under control.
As voters, we need to demand that politicians re-examine their fondness for carbon taxes, which are contributing to the very same cost of living crisis they say they want to help solve.
By Jay Goldberg
Jay Goldberg is a Troy Media Columnist and the Interim Ontario Director at the Canadian Taxpayers Federation.
Courtesy of Troy Media