Profits vs. carbon tax

Dear Editor:

In a Georgetown Independent and Free Press opinion piece dated Oct. 18, Wellington-Halton Hills MP Michael Chong correctly stated the global energy crisis has increased the cost of fuels associated with home heating and gas prices. He also asserted grocery prices have risen 10.8%. 

What he did not say was supply chain issues caused by the pandemic, simple supply and demand, and the illegal war in Ukraine all contributed to the increases we are witnessing. None of those reasons are the fault of the federal government, nor are they under their control.

He called on the federal government to stop increasing the carbon tax as one way to control current fuel prices. May I remind readers the carbon tax and rebate system was endorsed by Chong when he ran for the Conservative party leadership in 2017. He says that for many rural households and farm families, the federal climate action incentive payment doesn’t offset the cost of the carbon tax. But it offsets most, if not all, of it!

One thing Conservative politicians do not tell you are grocery companies and the oil and gas industry are reaping obscene profits on the backs of consumers. 

As a reminder, back in July 2008, the price of a barrel of oil hit US$145 and gasoline hit a high of $1.35 per litre. Now the price of oil is around US$87 per barrel, and gas is $1.76 per litre. The carbon tax adds $0.11 to the price per litre. Simple math says the price today should be around $87/$145 times $1.35 + $0.11 = $0.92 per litre.

The federal carbon tax is not responsible for the current energy price crunch. Canadians won’t go cold this winter because of the carbon tax. 

The only reason they may have trouble heating their homes, filling their gas tanks and feeding their families, is the unbridled greed of big business grocery chains and oil and gas companies.

The Conservative Party always wants to give tax breaks to big business – where is their concern for the average person then?

Let’s put the blame where it belongs.

Gord Cumming,
Georgetown