Ontario Trucking Association members are notifying the association about notices they have received from fuel suppliers regarding the increased cost of diesel fuel resulting from the new carbon pricing system that took effect in Ontario on Jan. 1, 2017.
Suppliers have been informing customers about the new price system and how it’s being reflected on carriers’ fuel invoices.
Reported diesel fuel price increases are said to be in the range of 5.25 to 5.50 cents per litre, which is consistent with a projection made by OTA in a November 22, 2016 notice on this subject.
“The impact of the carbon pricing system on diesel fuel prices will not be captured in Ontario at the retail level like other government taxes. Instead, it’s built into the wholesale price like other fuel supplier fees, such as freight and pump fees,” said Stephen Laskowski, OTA president.
It has also been reported to OTA that carriers are expecting an adjustment to the Freight Carriers Association (FCA) fuel surcharge rate. The change is expected to be published later this week to capture the impact of carbon pricing on diesel fuel costs in Ontario. Carriers not part of the FCA system are reporting to OTA they expect to raise their fuel surcharge rates as well.
On a related note, the Province of Alberta also introduced its carbon system on January 1. The impact on diesel fuel prices equates to a 5.35-cent per litre increase.