'It's a big price jump': Demand surges for heating oil ahead of carbon tax

It may be the last thing on your mind heading into the long weekend, but many Nova Scotians who heat with oil are booking a quick top-up in the next few days, hoping to save some money before the federal carbon tax takes effect July 1.

"Friday will be the busiest day for us,” said James Farquhar, GM of Scotia Fuels in Halifax.

"It's going to go up $0.1736. That's a big price jump."

The company alerted customers to the increase at the beginning of the month, and posted an explainer and further fuel breakdown on its website

Along with the diesel and heating oil numbers, it says gasoline rises $0.1431 per litre, kerosene increases by $0.1678 and propane rises by $0.1006.

"We've had a lot of requests and we've been managing them. We're just getting them done as we can before the first of the month,” said Farquhar, adding many customers are sharing opinions with the company.

"Most of them keep their comments relatively clean,” he said with a smile.

“A few of them have been a little irate, but you know, there's nothing we can [do] and the customers understand that. It's a new form of tax and we all have to pay.”

“I certainly feel great that we're trying to do things to make the environment better, and we all understand climate change, and we have to do things better. The way the tax is rolling out, it's a big price, but also with the rebates coming back, it just feels like it's a little mismanaged."

That’s a sentiment not shared by the Liberal MP for Halifax.

“Carbon pricing is widely understood as one of the most effective means of reducing carbon pollution,” Andy Fillmore told CTV News, Tuesday.

“In Nova Scotia, we have a large, rural population and that is why the federal backstop, called the Climate Incentive Payment, of $250 every quarter for a family of four, will come to about $1,000 a year, is going to offset the increase that people will see at the pump, and people can do their own math of their own vehicle and how they put, but they will see, by and large, that they come out ahead,” said Fillmore.

“The way that carbon pricing works is that people who pollute more, pay more. And in Nova Scotia, like the rest of the country, the people that tend to pollute more - it’s a very small proportion of the community, tend to be wealthier. Why? Because they tend to take vacations on jet planes, they tend to own more vehicles, bigger houses with high ceiling that require more energy to heat them, and so those are the people who may come out behind on the Climate Incentive Payment,” he said.

“The majority of Nova Scotians will come out ahead, especially when you consider there’s a rural ‘top-up’,” he added.

Unconvinced, the four Atlantic Premiers wrote to the Prime Minister last week, requesting an urgent meeting and a deferral on the carbon tax.

In a late day email to CTV News Monday, the PMO confirmed receipt.

“Our focus is always working collaboratively with provinces to make life more affordable for Canadians while taking action on climate change which is driving devastating extreme weather like Hurricane Fiona and unprecedented wildfires,” said the note.

“As the world is quickly shifting towards a net zero economy, we must also keep Canada competitive and make the necessary investments that will drive clean growth and create good jobs from coast to coast to coast.”

“We have received this correspondence and ministers are engaged on this file, just as they are on doing this important work across the country. The Prime Minister frequently speaks with the premiers on a number of issues facing Canadians and looks forward to continuing to be in touch,” it concluded.

Noting other federal incentives like rebates for heat pumps, Fillmore also shifted blame to the provincial government.

“The reason that the Climate Incentive Program is coming to Nova Scotia is that the provincial government recently cancelled the Cap and Trade Program. That’s not a bad thing: cap and trade wasn’t really working, it wasn’t growing the way that it need to meet our increasingly aggressive carbon reduction plans.

"It needed to be replaced with something, but the provincial government failed to replace it with anything. In Canada, we have a law that says provinces and territories must meet minimum standards, and Nova Scotia became one of those provinces that failed to meet the law. That’s why this program is happening.”

On Monday, Nova Scotia Premier Tim Houston told CTV News Ottawa had rejected his government’s provincial plan simply because there was no carbon tax component.

“CARP members are telling me they’re really confused by the carbon tax,” said Bill Van Gorder, chief policy officer for the Canadian Association of Retired Persons. 

“It’s very awkward. It hasn’t been explained well. At CARP, we have asked for explanations that are written in layman’s language so people can understand, but we still haven’t got that. And we talk to politicians, and we get the party line about it,” said Van Gorder.

“CARP members in Nova Scotia are feeling like ping pong balls, the provincial government says they don’t want to do it this way, and the federal government says we have to do something, and we’re caught in the middle while they can’t come to some kind of agreement,” he said, adding many pensioners are also unsure they’ll be able to handle the financial strain.

“They can’t afford it, and they’re telling us they can’t afford it,” he said.

“Some of them have done the math on the money that the government says they’re going to send back, which sounds like it’s going to be three hundred and something every quarter or something like that, but if you look at the extra that you’re going to pay for gas for your car, and oil for your home, it doesn’t add up,” he said.

“They agree and want to do something good for the environment. We all want to leave it better than we found it for our grandchildren, but they don’t understand how this tax - this large tax - is really going to fix the situation,” said Van Gorder.

“”It's a lot of money up front, and it's hard to change habits. We still have to drive to work. We still have to get our groceries. We still have to heat our homes,” said Farquhar, noting his family business will have to evolve in the future.

"There's no growth in the oil business at this time. We've got to look at pivoting at some point in time, but in the interim, just trying to keep the business going among climate change, among all the new taxes,” he said.

For more Nova Scotia news visit our dedicated provincial page.