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Carbon tax increase goes into effect January 1

Jan 1, 2018 | 1:19 AM

MEDICINE HAT –  Albertans will be paying more for gas and energy starting January 1, as the next increases to the province’s carbon tax goes into effect.

Starting January 1, the tax increases from $20 per tonne to $30/tonne.

The carbon tax will also be noted in costs for diesel and gasoline. The tax on gasoline will increase from 4.49 cents per litre to 6.73 cents per litre, while diesel will rise from 5.35 cents to 8.03 cents.

The price for natural gas will also go up, from $1.01 per gigajoule, to $1.51 per gigajoule.

Farm fuels are exempt from the carbon tax, and it does not apply to electricity.

The province says businesses may pass some costs related to the carbon tax onto consumers, but they believe the increases is expected to be relatively small, noting commodities imported from outside the province are not subject to the carbon tax.

The province says the indirect costs of the tax will range from $70 to $105 per household.

Businesses may pass some costs related to the carbon levy on to consumers. However, the increase is expected to be relatively small, since commodities imported from outside the province are not subject to the levy.

Rebates will be mailed out four times a year to offset costs associated with the carbon levy. Single Albertans who earn less than $47,500/year and families who earn less than $95,000/year are eligible for the rebate.

Families can calculate their estimated costs and potential rebate here.