Clean fuel mandate to quietly hike gas prices by 13 cents per litre

The regulations, introduced in 2023, mandate tripling ethanol content in gasoline—from 5% to 15%—over time.

 

Canadians have become so used to unpredictable fuel prices, the federal government believes they won’t even notice when gas quietly spikes by up to 13 cents a litre under its Clean Fuel Regulations. That’s according to a May 8 briefing note obtained by Blacklock’s Reporter, which reveals Carney's strategy to hike costs while downplaying the impact.

"Given the variability in fuel prices paid at the pump, increases in fuel costs due to the Clean Fuel Regulations may not be noticeable by most consumers, including farmers,” reads the internal memo titled Clean Fuel Regulations.

The plan? Force a greater share of costlier ethanol and biodiesel into fuel blends, while hoping market confusion masks the added burden. By 2030, the Department of Agriculture estimates the mandate will increase:

  • Gasoline by 6¢ to 13¢ per litre

  • Diesel by 7¢ to 16¢ per litre

But the Liberals insist this isn’t a tax—it’s just a “market-based mechanism.”

“Regulations are not a tax and are a market-based mechanism designed to spur innovation of clean technologies,” says the memo.

This internal estimate tracks with a 2023 Parliamentary Budget Office analysis, which pegged the eventual increase at 17¢ per litre. That’s not small change—especially in rural areas where people rely on diesel-heavy equipment and long drives.

The regulations, introduced in 2023, mandate tripling ethanol content in gasoline—from 5% to 15%—over time. Approximately 26% of Canada’s corn-growing area and 3% of its wheat-growing area are used to produce ethanol. 

Meanwhile, the government’s own advisors are waving red flags. A 2024 report from the Net Zero Advisory Body warned of the compounding effects of climate mandates:

“Truly transformative net zero climate policy needs to do more than just reduce emissions,” it said, pointing to rising costs across housing, energy, food, and transportation.

A separate 2024 Journal of Public Health study warned that millions of Canadians are already drowning in “energy poverty,” defined as households spending over 10% of their income on home heating and cooling, or paying more than double the national median for energy.

But Ottawa’s official stance? Relax. You won’t notice the difference.

Unless, of course, you’re trying to balance a family budget, run a farm, or drive to work outside a major city. Then you’ll notice—but by then, they’re betting it’ll be too late.

Sheila Gunn Reid

Chief Reporter

Sheila Gunn Reid is the Alberta Bureau Chief for Rebel News and host of the weekly The Gunn Show with Sheila Gunn Reid. She's a mother of three, conservative activist, and the author of best-selling books including Stop Notley.

COMMENTS

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  • neil stober
    commented 2025-07-19 12:57:34 -0400
    Bruce and Bernhard have hit the nail on head more lieberal confusion ,shift the blame on someone else typical . this country is on the way down all the incentive to work hard and build something is gone . they just regulate and tax companies towards leaving and setting up shop where they are free to make a product and profit . No wonder all Clown Carney has all his investments south of the border . It looks like the gov wants the country to fail
  • Bruce Atchison
    commented 2025-07-17 23:13:52 -0400
    Carney the con man hides and confuses these gas hikes. And stupid people will blame the oil companies instead of the real culprit.
  • Bernhard Jatzeck
    commented 2025-07-17 20:02:54 -0400
    That price hike would never affect the federal government and its multi-vehicle motorcades whenever someone “important” is going somewhere, now would it?