The new, crippling fuel regulations are delayed until at least next year, but will be even worse.
Justinflation has already resulted in outrageous gas prices. Families I know won’t be taking a vacation this summer because they can’t afford the high cost of fuel.
Consumers need a break from inflation. Higher food costs are a direct result of increased fuel prices. By lowering the ‘carbon intensity’ in fuel, in effect watering it down, mileage drops. That is what the new fuel regulations are intended to do. This is the same as ‘shrinkflation’ at the grocery store, when the retailer charges the same price for a box of cereal in a smaller package.
The punitive, new Liberal fuel standard (LFS) will apply to all types of fuels. No other country in the world is hobbling their economy with similar legislation.
Rather than working with Canada’s oil and gas sector, fuel suppliers have been set up by the NDP/Liberal coalition to be blamed for this policy failure. They are required to meet the regulations.
According to the Canadian Association of Petroleum Producers (CAPP) if they are not able to meet the new fuel requirements, producers will have to:
1. Purchase credits from other parties or contribute to a compliance fund to cover the difference, or
2. Halt the supply of fuel, which could result in ceasing operations, driving up costs to consumers and inflation or
3. Face criminal penalties.
The Financial Post writes, “there is a wide range of estimates on how the Clean Fuel Standard will affect gasoline and diesel prices, with some estimates as low as 2 cents per litre for fuel all the way up to 15 cents per litre.”
Provincial jurisdictions in Canada already have renewable fuel blending requirements in place. However, the federal legislation does not recognize the existing provincial requirements, meaning the new Liberal fuel standard is a tax, on a tax, on a tax. All requirements have to be met, even when the regulations duplicate each other.
The Liberal carbon tax is already fueling inflation. The new Clean Fuel Standard will pour jet fuel onto the inflation fire. For many, Trudeau’s energy policy is making life unbearable in Canada.
Raising taxes is no substitute for a credible environment policy.