As analysts say oil barrel could reach $200, Trudeau govt will increase carbon tax on April 1st
The Trudeau government will increase its carbon tax on April 1st, 2022, despite an unprecedented rise in energy costs for Canadians.
On Monday morning, constrained by global uncertainty and possible sanctions on Russian energy, Brent crude reached $139.13 a barrel, its highest level since July 2008.
The U.S. West Texas Intermediate (WTI) hit $130.50, also the highest price level recorded since July 2008.
Global oil prices surged by over 60% since the beginning of 2022, in large part due to the conflict that emerged in Ukraine in late February.
On Sunday, U.S. Secretary of State Antony Blinken opened the door to a possible ban of Russian oil imports for the U.S. and its European allies. Congress and the White House were also coordinating to move forward with the U.S. ban.
“We consider $125 per barrel, our near-term forecast for Brent crude oil, as a soft cap for prices, although prices could rise even higher should disruptions worsen or continue for a longer period”, a UBS commodity analyst told Reuters, adding that a “prolonged war” could see the Brent “moving above $150 per barrel”.
Analysts forecast a worse scenario if “most of Russia’s oil exports were cut off”, creating a 5 million barrel per day shortfall, “pushing prices as high as 200”.
This could result in Canadian gas prices at the pump, already above $2 in some provinces, settling at $3-4 prices, levels unseen in the country’s history.
Yet on April 1st, the Trudeau government will also increase its carbon tax by 25%, reaching a price of $50 per tonne of greenhouse gas emissions. The liberals ultimately want to increase the tax to reach $170 per tonne by 2030, which combined with sustained high commodity prices, would make fuel unaffordable for many Canadians.
Some Canadian politicians are standing up to the increase, arguing that the current commodity prices make it harder for Canadians to afford fuel already and that a tax increase is the last thing they currently need.
“The supply concerns caused by Vladimir Putin’s brutal invasion of Ukraine and other inflationary pressures have made energy unaffordable for many. Canceling the increase on the carbon tax right now is the right call”, Brampton mayor Patrick Brown wrote to the federal government.
“No new burdens should be on the backs of taxpayers during a period of economic upheaval”, he added.
Despite the warning, the Trudeau government has not signaled
any intentions to pause or halt the tax increase.
Canadians should expect difficult months ahead as supply chain woes and inflation increase their cost of living, now further exacerbated by climbing energy prices.
Both U.S. citizens and our Canadian brothers and sisters are suffering under two clowns. That the many have not "processed" the few who insist on taking orders from the Global Elite and making the people suffer is unfathomable. How long shall we wait? What freedoms do we not need? Why are we putting up with such hateful "leaders?" Biden and Trudeau must go.
Economic sanctions against Russia are having a huge impact in the stability of Western economies. The current inflation trend is peanuts compared to what a hyperinflation looks like. No one in the US or Canada has lived through such an event and have actually no idea of what it means.
I have experienced 80% inflation in a month. This means that when you get paid, you go out and by all that you need because the longer you wait, the less you can buy. The Biden administration has been setting up the US for a such a scenario since its beginning. Unfortunately, most people can't believe in what is only theoretical for them. When they do, it will be too late to avoid major consequences.