On January 1st the Federal Carbon Tax was imposed on Alberta motorists raising the average per litre price of fuel by around seven cents.

A Petroleum Analyst for GasBuddy. who make their living telling us where to find cheap gas, analyzing world fuel trends and predicting where gas prices are going tells us we shouldn't be complaining too loudly in Alberta.  It could be way worse, and it is in other parts of the country.

With gas prices in Airdrie somewhere around a dollar per litre after the fed's tax came into effect, Patric DeHaan says Alberta is bucking a trend in the country.  "Canada's average is about $1.13 a litre whereas a year ago it was closer to $1.02.5.  Alberta bucks a trend that we're seeing across Canada."

According to the latest figures from GasBuddy, Alberta has the second-lowest average in Canada.  Manitoba has the lowest, averaging $1.01 per litre.  Alberta's average is $1.01.4.  DeHaan says one year ago the average price in Alberta was 98.3.

Saskatchewan drivers are paying $1.07.2 per litre, then things go up from there in other provinces.  Ontario's average is $1.15, Quebec's is $1.19.4 and Newfoundland's is $1.26.9.

British Columbia still has the honour of having the highest gas prices in the country, averaging $1.31.6.  In Victoria, motorists are paying, on average, $1.39.8 for gas.

DeHaan says he doesn't expect gas prices to rise much in the next couple of months since we're headed into the coldest months of the year.  "That's when gasoline demand is at it's weakest," explains DeHaan.  "In fact, that should offset, and in fact, once we account for the increase in the carbon tax, I think that wholesale gas prices should actually go lower than they were a year ago."

GasBuddy expects 2020 to be a very similar year to 2019 for gas prices, albeit with a few cents per litre added because of the carbon tax.  DeHaan thinks oil production in Canada, and in some developing countries, will grow this year.  That will act as a ceiling to how high gas prices go.

DeHaan says the overall effect of the carbon tax will be an increase of around 10 cents per litre over the end of 2019 following April 1st when the carbon tax increases from its current $20 per tonne of carbon dioxide equivalent to $30 per tonne.  

The average family of four can expect a carbon tax rebate amount of around $880 when they claim it on their 2020 tax return. 

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