Islanders brace for July fuel increases, though rebates also on way

Prince Edward Islanders will be hit with some new carbon fees when they fill up their oil tanks or buy fuel for their vehicles and barbecues as of this Saturday.

Heating oil will go up 17 cents a litre on July 1, gas and dieselwill rise by around 4 cents, and propane will increase 10 cents.

It's part of new federally mandated prices on carbon emissionsthat P.E.I. Premier Dennis King has saidwill spike home heating fuel prices to "an all-time high level."

"Ludicrous" is how Islander Janet Vanderkaydescribes the increases, especially those to furnace oil.

"Honestly, I don't know how they're expecting us to survive," she said.

"I realize they're trying to do good," she said of the push to reduce the environmental footprint, but added:"People are going to be cold and that's all there is to it or homeless."

Myranda Newsonalso said it would have a negative affect on her household.

"It's good to help the environment you know, switch people over to sustainable energy butit doesn't help with the cost of living for people that can't afford it.

"It's going to make a difference."

At the sametime, though, Islanders will also receive federal carbon rebate cheques starting next month.

In a briefing with the media Wednesday, a federal spokesperson said a P.E.I. family of four would get three equal payments of $240 this fiscal yearand said it would amount to morethan they are expected to be shelling out for more-expensive petroleum products.

The payments will be sent out in July, October and January, as long as individuals have filed their taxes for 2022.

2nd federal cost factor in wings

There are other increases coming related to new Clean Fuel Regulations that will require refineries to reduce the emissions they generate related to production, transportation and consumption.

Refineries will have a year to comply and become more efficient, but some of those costs are also expected to be passed on to the consumer, likely around 10 cents more per litre by 2030.

Environment and Climate Change Canada told CBCNews earlier this month that the new regulations will have a "minimal" impact on gas prices for the next few years.

The federal department is estimatingthat by 2030, prices at the pumps will go up between six and 13 cents per litre of gasoline, depending on refineries.Thatis on top of the 27-cents-a-litre carbon tax that will be added to gasoline by 2030.

Ottawa defends implementation of clean fuel regulations

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Environment Minister Steven Guilbeault says the federal government will help Atlantic Canadians 'get off home heating oil.'

The increasescomeat a time when car makers are boosting production of electric and hybrid vehicles that should contribute to an overall decrease in the use of gas and diesel.

Groups plan for bigger bills

For now, though, many are still relying on traditional combustion engines not to mention furnaces.

The Salvation Army in Charlottetown operates a number of buildings that are heatedwith furnace oil, includingits church and offices, amen's shelter and transitional housing units.

Lt. John Burton said donations to the church aren't spent on operational costs,so the organization must budget its resources carefully.

"We're going to have to tighten our belts and have to be a little more efficient with our buildings for sure," he said.

The group also runs a home heating program, which helps people of limited means with furnace oil costs.

We do expect to see more people coming in...There's so much need.Lt. John Burton

"We do expect to see more people coming in," said Burton.

He said they sometimes supply gas cards in emergency situations, such as when someone with nothing in the tank has to travel for amedical appointment.

"There's so much need," he said.

Meanwhile, the Island Regulatory and Appeals Commission has saidit is undertaking a review of the amount of profit per litre that petroleum retailers and wholesalers on P.E.I. currently receive, looking at what "benchmark price" should be used for IRAC's weekly price adjustments.

The commission is inviting the public and industry to comment, with a deadline for feedback of July 17.