Jack MacLaren said: "[cap and trade] will enrich the government by about $2 billion a year”
FACT: Wrong. Every dollar generated through capping pollution from businesses must be, under law, deposited into a dedicated account and reinvested into green projects like transit, electric vehicle incentives and housing retrofits that fight climate change.
This means every dollar goes back into helping families and businesses successfully make the transition to a low-carbon economy.
MacLaren said: "these [gas hikes] occurred only hours after cap-and-trade came into effect. Can you imagine what you'll be paying a month from now? How about a year from now?"
FACT: The government has been upfront about the benefits and costs – including gas prices – of fighting climate change, but MPP MacLaren clearly needs a lesson on how those gas prices are determined.
The majority of the price paid at the pump reflects the cost of crude oil. In 2016, this was 35% - 35.1 cents out of a 100.5 cents/litre (last year’s average price in Ontario).
Fluctuating global crude oil prices are the single most important factor in what you pay. The collapse of crude prices in 2014 led to a dramatic decrease in gasoline prices here in Ontario and crude’s ups and downs since have impacted prices here. Any costs associated with fighting climate change – which are borne by fuel distributors who decide how and if the costs are passed on to consumers – are small compared to the fluctuating market price of crude oil.
Regardless of what the Conservatives may say, fluctuating global crude oil prices that are out of Ontario’s control impact gasoline prices dramatically more than the costs associated with fighting climate change.