A statement from the Government of Canada says the new regulations do not prescribe a price at the pumps. Instead, actual price impacts will depend on how producers and importers choose to comply.

You may have heard the price of gas is going up July 1st because of the carbon tax. The federal government says it’s actually because of the  new Clean Fuel Regulations which requires producers and importers of gas and diesel to reduce the life-cycle carbon intensity from the fuels supplied for Canada. That means the regulations account for emissions across all stages of fuel production and use.

However, the Canadian Taxpayers Federation says in order to offset those regulatory costs producers and importers of gas and diesel would need to buy carbon credits and that in turn would likely be passed down to consumers.

The Canadian Taxpayers Federation says by 2030, the Parliamentary Budget Officer estimates, what CTF calls a second carbon tax, will cost the average family in Saskatchewan $1,117 per year and increase the price of gas by up to 17 cents per litre.