Canada: What will new fuel standards do to gas prices? The Baloney Meter weighs in - PressFrom - Canada
  •   
  •   
  •   

CanadaWhat will new fuel standards do to gas prices? The Baloney Meter weighs in

19:30  11 july  2019
19:30  11 july  2019 Source:   thestar.com

What will new fuel standards do to gas prices? The Baloney Meter weighs in

What will new fuel standards do to gas prices? The Baloney Meter weighs in OTTAWA — "Your secret fuel tax will undoubtedly increase the cost of gasoline by at least another four cents a litre, a fact you continue to hide." — Conservative Leader Andrew Scheer in a letter to Prime Minister Justin Trudeau --- Conservative Leader Andrew Scheer looked this week to play off the sensitivity Canadians have to changes in gas prices, warning of an increase "by at least another four cents a litre" because of planned standards to

The Congressional Budget Office says the White House plan to raise fuel efficiency could mean more potholes, or higher gas prices . Deron Lovaas: For the past century, the most tried and true revenue tool for transporation at the state and federal level has been gas taxes and that promotes a perverse

You can also search for gas prices by zip code. It is possible to save money by comparing gas We’re going to debunk the most popular myths on car fuel and find out what you can actually do to To give you an idea of the varying gas prices across the country, New York and California have the

What will new fuel standards do to gas prices? The Baloney Meter weighs in© Jeff McIntosh Conservative leader Andrew Scheer attends a Stampede breakfast in Calgary, on July 6, 2019. Conservative Leader Andrew Scheer looked this week to play off the sensitivity Canadians have to changes in pump price warning of an increase "by at least another four cents a litre" because of planned standards to make fuels cleaner.

OTTAWA - “Your secret fuel tax will undoubtedly increase the cost of gasoline by at least another four cents a litre, a fact you continue to hide.” — Conservative Leader Andrew Scheer in a letter to Prime Minister Justin Trudeau

---

Conservative Leader Andrew Scheer looked this week to play off the sensitivity Canadians have to changes in gas prices, warning of an increase “by at least another four cents a litre” because of planned standards to make fuels cleaner.

Gas prices up for fifth straight week

Gas prices up for fifth straight week June 13 was the last time costs went down.

When gasoline prices are high, the standards would ratchet up to become binding, achieving maximum, cost-effective fuel and emissions savings. "By allowing fuel -economy standards to adjust in tandem with the price of gas , such a policy would fully leverage consumers' willingness to pay for

Gas Prices Jump a Nickel Ahead of Independence Day Holiday Read more ». National average gas prices .

The implication in his letter to Prime Minister Justin Trudeau is that overall costs for consumers would go up as a result of the standard, which is a few years from coming into force and separate from the carbon tax.

Do Scheer’s extra cents make sense, or is the price being pumped up?

The Canadian Press Baloney Meter is a dispassionate examination of political statements culminating in a ranking of accuracy on a scale of “no baloney” to “full of baloney” (complete methodology below).

Spoiler alert: This one earns a rating of “some baloney.” Here’s why.

The facts

The Liberals launched consultations in late 2016 about developing a clean-fuel standard that would set limits on carbon emissions from the burning of fossil fuels, a measure known as carbon intensity. Among the options to meet the standard for producers is to include more ethanol or biofuels in gas at the pumps.

Gas Prices Will Rise By Up To 8 Cents Per Litre In Several Canadian Provinces

Gas Prices Will Rise By Up To 8 Cents Per Litre In Several Canadian Provinces Better fill up quick!

Natural gas prices , as with other commodity prices , are mainly driven by supply and demand fundamentals. However, natural gas prices may also be linked to the price of crude oil and/or petroleum products, especially in continental Europe.

Natural Gas . Exploration and reserves, storage, imports and exports, production, prices , sales. The amount of carbon dioxide (CO2) that is produced from burning a fuel weighs more than the amount of the fuel itself, because during complete combustion, each carbon atom in the fuel combines with two

Gas prices are a combination of the cost of crude oil, refining and transportation, government taxes, and retailer mark-up. Mixing ethanol is an additional cost because of separate purchase, transport and infrastructure requirements, such as holding tanks at pumps.

A cost-benefit analysis released by Environment Canada in February acknowledged the costs of implementing the standard to reduce carbon intensity “would likely be passed” on to consumers, but didn’t estimate how much those might be.

In April, the Canadian Chamber of Commerce estimated an increase of 1.5 cents per litre by 2025, which the report noted was a conservative estimate.

Like the earlier federal report, the organization acknowledged clearer calculations would come once the final regulatory text is released.

Simon Jefferies, a spokesman for Scheer, said the Conservatives spoke with stakeholder organizations and policy experts to come up with the estimate, and relied on a study by Navius Research Inc. done for Clean Energy Canada, a think-tank at Simon Fraser University.

Tories, Libs fight over costs of climate action in election-campaign preview

Tories, Libs fight over costs of climate action in election-campaign preview OTTAWA — A day after Conservative Leader Andrew Scheer accused the Liberals of plotting to levy a "secret fuel tax" on families, seniors and farmers, the Liberals volleyed back with allegations the Tories have nothing but smears to offer in place of a real climate-change plan. The federal election is still three months away but both parties seem happy to have this fight. The Liberals are betting that Canadian voters want potent policies to cut greenhouse-gas emissions. The Conservatives are betting that those same voters don't want to pay too much for them.

"These fuel standards represent the single most important step we've ever taken to reduce our dependence on foreign oil," said President Obama in a The changes will raise new car prices , but the government says that will be offset by savings at the pump. The new gas -mileage standards will

Lower gasoline prices might save you money, but statistics show you’re willing to spend those savings on … gasoline . With U.S. gas prices at a five-year low, the latest data from the University of Michigan’s Transportation Research Institute says the average fuel economy of a new vehicle

That study for Clean Energy Canada estimated an increase of five cents per litre by 2030.

The experts

Dan Woynillowicz from Clean Energy Canada said modelling in the study cited by the Conservatives took into account the effects that policies like increasing fuel-efficiency standards in vehicles would have on household budgets. The overall result? Consumers come out ahead because of savings elsewhere.

To look at the per-litre cost in isolation, he said, is “a false way to look at it.”

“While they (consumers) might face higher per-litre costs for gasoline, they will be driving a much more fuel-efficient vehicle, and so the benefits of that outweigh those additional costs in terms of what they’re left with at the end of the month,” Woynillowicz said.

It’s the other side of the balance sheet that Mark Jaccard points to.

“If a politician focuses only on the increase in the price of gasoline and does not point out that this lowers the price of zero-emission alternatives that we must be quickly switching to — like Norway, Sweden, California, Brazil, China — (that politician) should score at the maximum on the baloney meter,” said Jaccard, a professor of resource and environmental management at Simon Fraser, in an email.

Scheer vows to scrap clean fuel standard, calls Liberal plan a 'secret fuel tax'

Scheer vows to scrap clean fuel standard, calls Liberal plan a 'secret fuel tax' Conservative Leader Andrew Scheer says a government led by him would scrap what he has dubbed a "secret fuel tax" — a plan by the Liberal government to improve fuel standards through regulatory changes that have not yet been finalized. In addition to the existing carbon tax regime, the Liberal government has said it wants to make the fuel supply (like gas for autos or home heating fuel) cleaner, to reduce carbon emissions and help Canada meet targets set under the Paris climate change accord.

The proposed standard takes into consideration the greenhouse gas emissions produced by cars on the road and aims to curb that. Meeting the new standard will cost the auto industry 7 billion, the government estimated. The government believes the fuel savings will outstrip the higher car prices .

Gas prices by country using official data sources. Gasoline prices , 01-Jul-2019: The average price of gasoline around the world is 1.11 U.S. Dollar per liter. The differences in prices across countries are due to the various taxes and subsidies for gasoline .

British Columbia provides an example. Dan McTeague, a former MP turned gas-price analyst at GasPriceWisdom.com, estimates the province’s fuel standard increased prices by between eight and 15 cent per litre.

“That doesn’t necessarily mean you can transpose that, but ... I thought the four cents that Scheer provided was low,” McTeague said.

Woynillowicz said federal regulations wouldn’t prescribe how fuel providers must comply, allowing them to come up with most cost-effective way, including through a credit-trading market, similar to a cap-and-trade system, which would reduce consumer costs for renewable energy sources.

If companies decide to buy credits, then the price effect would likely be around four cents per litre, McTeague said. If companies opt for more ethanol in their gas blends, then the price per litre will likely be higher, he said. But much relies on the regulations themselves, McTeague said, meaning “the devil is in the details.”

The verdict

There’s general agreement that gas prices would rise with clean-fuel standards. Less clear is by how much. Scheer’s statement also doesn’t take into account the net effect on consumers who could see prices drop in other energy-consumption areas. Missing important details needed for a fuller understanding of the issue leads to a finding of “some baloney.”

Methodology

The Baloney Meter is a project of The Canadian Press that examines the level of accuracy in statements made by politicians. Each claim is researched and assigned a rating based on the following scale:

No baloney — the statement is completely accurate

A little baloney — the statement is mostly accurate but more information is required

Some baloney — the statement is partly accurate but important details are missing

A lot of baloney — the statement is mostly inaccurate but contains elements of truth

Full of baloney — the statement is completely inaccurate

Why the B.C. inquiry into gas prices will reveal which companies respect their customers.
Why the B.C. inquiry into gas prices will reveal which companies respect their customers

—   Share news in the SOC. Networks

Topical videos:

usr: 0
This is interesting!