Gas, diesel prices rise in Nova Scotia as federal carbon pricing kicks in

The price at the pumpsjumped dramatically in Nova Scotia on Saturday as new federal carbon pricingcame into effect.

The price of regular gas rose 16.7 cents a litreand diesel rose 20.3 cents a litre,according to a release from the Nova Scotia Utility and Review Board. Drivers in the Halifax area will pay a minimum of $1.65.6 per litre for gas and $1.58.6 for diesel.

The new carbon pricing was announced by the federal government last year after the provincial government refused to come up with a pricing mechanism of its own.

At the time, Environment and Climate Change Minister Steven Guilbeault said most people would receive more money through quarterly rebates than they would pay out as a result of the levy.

But a report by Parliamentary Budget Officer Yves Girouxsaid only Nova Scotians in the lowest of five income bracket groups would come out ahead of the increases.

Speaking to CBC'sPower & Politics on Friday, Nova Scotia Premier Tim Houston said the tax will affect more than just the cost of fuel.

"Because the gas goes up and diesel goes up it really means everything goes up," Houston said.

"Everything at the cash register will be a little more because of this tax. And the worse thing is this tax won't do anything to preserve the planet."

People entitled to receive the federal government's climate action incentive paymentscan expect the first tax-free quarterly rebate payments to start in July.