Natural gas going up as carbon tax drops to zero

By Medicine Hat News on April 2, 2025.

The cost of natural gas will rise in April, though the federal carbon levy on the home heating fuel will be charged at zero.

The new commodity rate from the City of Medicine Hat’s utility department on Tuesday states a price of $2.49 per gigajoule for the next month. That’s up from $2.19 last month, and is the highest price since December 2023.

Gas used this month by local customers won’t see the carbon levy added. It had been $4.10 per gigajoule and was set to rise again April 1.

That, however, was suspended last month prior to the start of the federal election and the price set to zero.

City billing officials tell the News the levy and rate were in force on gas used until the end of March 31, meaning charges will still appear on that usage over the next one or two bills.

City power prices remained at a minimum floor price set by council in late 2023.

Power used in April will be charged at 7 cents per kilowatt hour. The Alberta wholesale price, which guides the local price, was 4.5 cents per kWh.

Medicine Hat’s gas price is set by the cost of purchasing gas for resale averaged over 120 days, plus a 7-cent premium.