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News & resources / Media / Atlantic premiers should focus on an immediate solution to lower energy costs and reduce carbon emissions
Wallace, NS, May 31, 2023 – With the escalating cost of carbon-intense fuels such as heating oil, gasoline and diesel scheduled for July 1, the premiers of Atlantic Canada should focus on expanding the opportunity for affordable, low-emission propane energy, according to members of the Atlantic Committee of the Canadian Propane Association (CPA).
In remarks today to CPA members from across Atlantic Canada, committee chair Royden Boudreau delivered a message on their behalf that now is the time for Atlantic premiers to focus on developing policies that optimize the expanded use of propane – a low-cost, low-emission and immediate energy solution that is available today to all Atlantic Canadians.
“Propane is a much more affordable energy option compared to furnace oil, gasoline and diesel,” said Boudreau. “A case in point is furnace oil. This past winter, the price of furnace oil was as much as $1.00 per litre more than propane.”
“On top of that, switching from furnace oil to propane reduces emissions by almost 40 per cent and can provide the primary energy source needed to support heat pumps.”
About 93 per cent of propane sold in Canada is a by-product of natural gas. Therefore, it has a much lower carbon intensity than heating oil, gasoline, and diesel which are produced from oil. As a result, the carbon taxes on propane are considerably less.
“If you look at the federal fuel charge schedule as it projects out to 2030, the impact of the carbon tax on propane will be much less than carbon-intense fuels,” said Boudreau. “In some cases, propane will be about 20 cents per litre cheaper by 2030.”
According to Environment and Climate Change Canada, by 2030 the federal fuel charge on a litre of heavy fuel oil will be about 55 cents per litre, for light fuel oil about 54 cents a litre and for gasoline about 37 cents per litre. The charge on propane will be closer to 26 cents per litre.
“In our meetings with governments across the region we have maintained that an all-hands-on-deck approach is the best way to reduce emissions,” said Bourdeau. “As premiers continue to look to develop policies that will mitigate the rising cost of energy for consumers while reducing emissions, the expansion of propane energy will provide an immediate solution for those efforts.”
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