Relief at the pumps; consumer carbon tax axed

By BRENDAN MILLER on April 2, 2025.

bmiller@medicinehatnews.com

Drivers in the Hat had to “triple check” prices on April Fools Day as the end of the federal consumer carbon tax was reflected at the pumps on Tuesday, with the average price per litre expected to drop by as much as 18 cents.

Prices at several stations dipped below 130.9 cents per litre, including Gas King along Third Street NE. Staff say it was a busy day at the pumps as some drivers had to make sure the prices were correct.

“Everyone’s been extremely excited and some (customers) had to do triple takes to make sure the price was right,” said manager Nikita Haldane.

The federal government put the tax in place in 2019 as a way to incentivize Canadians to transition to greener energy sources. Quarterly rebate cheques were issued as compensation, but the levy remained a contentious topic for many, and opposition politicians campaigning on its cancellation.

On his first day as prime minister, Liberal leader Mark Carney cancelled the tax that had been set at 17.6 cents per litre on gasoline, as well as 15.25 cents per cubic metre on natural gas, used to heat homes.

Although the price drop may not be immediate at all local gas stations, GasBuddy.com is reporting most reduced prices Tuesday morning, save drivers up to $9 when filling a standard 60-litre gas tank.

Homeowners can also expect to see a dip on utility bills – though some upcoming bills in Medicine Hat will still reflect March usage – especially homes with natural gas as a heating source, with the exemption of Saskatchewan.

Local producers using large amounts of natural gas and electricity to keep greenhouses warm are welcoming the reduction.

Alberta Cramer, owner of Rolling Acres Greenhouse in Redcliff, says the removal of the carbon tax is a positive step forward, but is still hesitant about policies with the election upcoming. Cramer says Canadian greenhouses will see a drop in cost for natural gas as well, as a drop in electricity as it takes a lot of energy to grow produce.

“We’re looking forward to it, I mean, no doubt a little nervous with the election, because we don’t want to see the carbon tax back again, even industrial-wise, because we buy a lot of material.”

Additionally, Cramer says growers had a hard time adding additional costs to their produce when the levy was originally introduced due to the nature of selling perishable food.

“For us in the greenhouse industry it was pretty hard to put that cost on our product and try and get some of it back,” he explains. “We need to move our product. We can’t hold on to it and wait for a better price, we’re price takers.”

The removal of the tax may also increase investment within the sector, Cramer hopes, creating growth, which in turn could be supported by the growing interest in buying locally.

“Nobody was investing, nobody was interested,” says Cramer. “I hope that business guys will start to get comfortable again.”

Although greenhouse growers do not set the prices at grocery stores, Cramer is hopeful the tax removal will be translated on the price tag on veggies and fruits grown locally.

“You’re probably going to see a bit of a decrease with the price, we’re in a bit of a price struggle right now … but will the grocery stores lower? I’m not sure. But I sure hope so, because food prices have gone crazy.”

Several local grocery store chains, including Superstore and Safeway, purchase produce from local growers. Many greenhouses including Rolling Acres also sell their produce directly to customers on site.

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