Here’s why you’re going to pay even more for gas in BC next month

Mar 10 2023, 10:08 pm

A tax increase is going to make it more expensive to fill up your vehicle in BC.

Starting April 1, the carbon tax will increase by about three more cents per litre of gasoline. That brings the total amount of carbon tax per litre to 14.31 cents.

Plus, depending on where you live in the province, there are other taxes added to that mix as well. People who fill up in Vancouver already pay about 38 cents per litre in provincial taxes — even before this upcoming increase.

And this won’t be the last time drivers will see a jump at the pump.

“This means that every litre of gas will rise by 3 cents for every $15 per tonne increase each year… until it reaches $170 in 2030 – aligning with federal requirements,” BC’s Ministry of Finance told Daily Hive about the predicted three-time increase over the next seven years.

The revenues go towards the Climate Action Tax Credit, which is available to British Columbians with lower or moderate incomes, and as the tax increases, so will the amount available in the credit. The revenue also goes to the CleanBC plan, which is aimed at rebates for zero-emission vehicles and top-ups for energy-efficiency improvements like heat pumps.

While the increase isn’t a major surprise as it follows the federal government’s move to increase the carbon pollution pricing systems in November, the province had waited to unveil the details about it in the budget last month.

In its updated release, it shows the tax on diesel and other fuels are also going up.

carbon tax

The province detailed what the tax increase would look like per fuel for the next few years. February 28, 2023. (BC government)

But while many applaud the increase in taxation on fossil fuels from an environmental perspective, the carbon tax is not without its critics.

Some have been speaking out against it from an affordability standpoint, as British Columbians continue to see rising inflation and grocery prices.


“B.C. has the strongest, most comprehensive carbon-pricing policy in Canada,” the BC’s Ministry of Finance said.

Last year, BC’s former premier John Horgan was asked if BC would consider lowering taxes to help with the cost of living.

However, Horgan said the taxes were vital to pay for infrastructure, transit, and more, and instead drivers were given a $110 rebate last spring.

The province continues to see the highest prices in the country with the cost for regular in Vancouver above $1.80 per litre as of Friday, well above the $1.40 that drivers in Toronto pay, according to GasBuddy.

With files from Amir Ali.

Claire FentonClaire Fenton

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