Government of Canada Clean Fuel Policy to Push Up Pump Prices by 13 Cents per Litre

Gas Prices Jump
A carbon tax repackaged under a different name has taken effect today.
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Canadians are so used to volatile fuel prices that the federal government is quietly counting on them not noticing a planned increase of up to 13 cents per litre under its Clean Fuel Regulations.
That’s the core message in a May 8 briefing note obtained by Blacklock’s Reporter, which outlines a strategy to raise fuel costs while minimizing public backlash.
“Given the variability in fuel prices paid at the pump, increases in fuel costs due to the Clean Fuel Regulations may not be noticeable by most consumers, including farmers,” states the internal memo titled Clean Fuel Regulations.
The Plan: Raise Ethanol, Raise Prices
The government’s approach is to mandate higher levels of ethanol and biodiesel in fuel blends—more expensive alternatives to conventional fuels—while relying on price fluctuations to mask the added cost.
According to Agriculture Canada projections, by 2030 the regulations will add:
6¢ to 13¢ per litre to gasoline
7¢ to 16¢ per litre to diesel
Despite the impact, the federal government insists this isn’t a tax—it’s a “market-based mechanism.”
“Regulations are not a tax and are a market-based mechanism designed to spur innovation of clean technologies,” the memo claims.
The estimates closely match a 2023 report by the Parliamentary Budget Officer, which projected a fuel price increase of up to 17 cents per litre—a significant hit for Canadians, particularly those in rural areas reliant on diesel equipment and long commutes.
Fuel Mandate’s Growing Footprint
First introduced in 2023, the Clean Fuel Regulations require tripling ethanol content in gasoline—from 5% to 15% over time. Currently, 26% of Canada’s corn-growing land and 3% of wheat acreage are already dedicated to ethanol production, raising concerns about food supply impacts and land use.
Warnings from Within
Even the government’s own advisors are issuing warnings. A 2024 report from the Net Zero Advisory Body stressed that climate policy must go beyond reducing emissions to address affordability and economic strain, citing mounting costs in housing, energy, food, and transport.
Meanwhile, a 2024 study in the Journal of Public Health found that millions of Canadians live in “energy poverty”—defined as spending more than 10% of income on heating and cooling, or paying more than twice the national median for energy.
The Bottom Line: “You Won’t Notice”—Until You Do
Despite growing concerns, Ottawa’s message remains: Relax. You won’t notice the difference.
But for Canadians balancing household budgets, running farms, or commuting outside big cities, the impact will be real—and critics warn that by the time it’s felt, it may be too late to reverse course.








