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Impact of Ontario Carbon Tax on FCA Weekly Fuel Bulletin

Impact of Ontario Carbon Tax on FCA Weekly Fuel Bulletin

Fort Erie, ON

The new Federal ‘Carbon Tax’ will apply to all transportation fuel purchased in the Province of Ontario with an effective date of April 1, 2019. The Ontario Carbon Tax rate for ultra-low sulphur diesel (ULSD) fuel effective on that date is 5.37 cents per liter; this is the amount that will be added to and included in the ‘pump price’ as of April 1, 2019. ULSD is the fuel type that is the basis for the Freight Carriers Association of Canada (FCA) Weekly Fuel Cost Bulletin.

The ‘Current Price’ for ULSD that is used in the calculation of the FCA Fuel Bulletin is a weighted average of diesel fuel purchased by the for- hire trucking industry in the Provinces of Ontario and Quebec. Since there was already a Carbon Tax on Quebec purchases of diesel fuel, prior to April 1, 2019, only the Ontario component of the weighted average price will be affected by this new Ontario Carbon Tax.

The FCA Weekly Fuel Bulletin is published on Thursday of every week, with an effective date of the following Monday and is based on the price of diesel fuel purchased during the immediately preceding week. Under this protocol, the FCA Fuel Bulletin published on Thursday April 4, 2019 – with an effective date of Monday April 8, 2019 – is the first bulletin that reflects the impact of the new Ontario Carbon Tax.

Freight Carriers Association of Canada