Gas and diesel prices are rising in Nova Scotia as federal carbon prices kick in

The price at the pumps jumped dramatically in Nova Scotia on Saturday as new federal carbon prices went into effect.

The price of regular gas rose 16.7 cents per liter and that of diesel rose 20.3 cents per liter, according to a press release from the Nova Scotia Utility and Review Board. Drivers in the Halifax area pay a minimum of $1.65.6 per liter for gasoline and $1.58.6 for diesel.

The new carbon pricing was announced by the federal government last year after the provincial government refused to come up with its own pricing mechanism.

Environment and Climate Change Secretary Steven Guilbeault said at the time that most people would receive more money through quarterly rebates than they would pay out as a result of the levy.

But a report by parliamentary budget officer Yves Giroux said only Nova Scotians in the lowest of five income brackets would come out ahead of the increases.

In conversation with CBCs Power & Politics on Friday, Nova Scotia Prime Minister Tim Houston said the tax will affect more than just fuel costs.

“Because the gas is going up and the diesel is going up, it really means everything is going up,” Houston said.

“Everything at the box office will be a little bit more because of this tax. And the worst part is that this tax won’t do anything to save the planet.”

People who are entitled to those of the federal government Incentive payments for climate action can expect the first tax-free quarterly rebate payments to begin in July.