Opinion: Canadians deserve long-term energy solutions, not short-term fixes

A two-month tax holiday on non-essentials like game consoles and snack foods is a short-sighted attempt to solve Canada’s affordability crisis. What Canadians need is a long-term, practical approach to reducing basic living costs. This winter, the government needs to remove taxes on lower-emission home energy sources like propane. Canadians shouldn’t have to choose between buying groceries, fuelling their vehicles, or heating their homes, especially when the government can provide a meaningful solution.

A new national poll commissioned by the Canadian Propane Association (CPA) on behalf of its 400 members reveals most Canadians want the federal government to support reliable, affordable, and lower-emission alternative energy choices like propane. Conducted in August 2024, the survey underscores rising concerns over energy affordability, and a growing demand for practical alternatives. This is especially true for more rural and remote communities where access to the natural gas pipeline and electricity grid is limited or nonexistent.

This isn’t a new issue. Energy poverty—where households can’t afford basic energy needs—affects nearly one in five Canadians, according to McGill University. For rural, Indigenous, and remote communities—where access to the natural gas grid or reliable electricity is often out of reach—the stakes are even higher.

The federal government’s own data shows the challenges of energy poverty. A report by Statistics Canada found that affordable energy choices are not available equally to all Canadians. Areas of Canada that are off the natural gas grid suffer more from energy poverty. The 2021 Census showed that “822,000 households in Canada (5.6%) were energy poor, and this was more prevalent in the Atlantic provinces (ranging from 10.7% to 13.7%).” It is reasonable to assume that all areas of the country that are beyond the natural gas grid—like Atlantic Canada—suffer from energy poverty.

We need a government that recognizes the unique resources and needs of all Canadians, regardless of where they live. Balancing reliability, affordability, and lower-emission goals equitably is key to ensuring a successful energy strategy for our country.

The federal government’s ambitious plan to electrify home heating by 2035, paired with carbon taxes on conventional fuels, ignores the harsh realities faced by these non-urban communities. Last fall, to address energy affordability, Ottawa exempted heating oil users from paying the carbon tax, but propane—cleaner, more affordable, and widely used beyond the gas grid—was left out. This omission created a stark divide, pitting neighbours against neighbours, unfairly penalizing those who rely on propane for essential energy needs. This policy not only discourages the adoption of cleaner energy alternatives, but it also places an unnecessary burden on those who can least afford it.

The CPA poll highlights that Canadians from all walks of life—whether they live in urban or rural areas, earn high or low incomes, or lean left or right politically—recognize propane as a cost-effective, lower-emission alternative to other heating fuels like heating oil and diesel. Propane powers homes, schools, businesses, transportation, and critical services in rural and remote areas where alternatives are unavailable or prohibitively expensive or unreliable due to the cold Canadian climate. It’s more than a backup plan—it’s a lifeline.

Yet the government continues to punish those who rely on traditional energy sources—except heavy-emitting heating oil—with a carbon tax that will progressively increase over the next five years.

Heating our homes is not a choice. Canada needs a comprehensive energy strategy that includes all forms of low-emission energy to ensure that every Canadian can access affordable, reliable, and sustainable energy. The goal of public policy should always be for Canadians to be treated equally, regardless of where they live or the type of energy they rely on.

The government’s current policies are failing to do this. By exempting heating oil from carbon taxes while penalizing propane, Ottawa is creating inequities that deepen the affordability crisis for rural and remote communities.

Canadians deserve better. It’s time to stop relying on quick-fix solutions like short-term tax holidays for non-essentials and focus on long-term, practical solutions that address the root causes of Canada’s affordability crisis. By treating propane and all energy sources equitably, the government can start building a resilient, affordable energy future for all Canadians, regardless of where they live.

Shannon Watt is the president and CEO of the Canadian Propane Association.
The Hill Times