Isra-Mart srl : Oil prices doing the job of carbon tax

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Isra-Mart srl news:

The upcoming July carbon tax increase should be axed.

I was a big booster of the carbon tax when it was first announced. My theory was that it is a good tax for the environment to fight climate change and for it to change people’s attitudes. They did – but mostly due to the market increase in gas prices. People bought hybrids, cut down on driving by consolidating trips.

Also, it was a bad coincidence that fuel prices had hit all time high (around $1.50/litre) at the time the tax took effect. Any impact of the tax itself was overshadowed by the market increase in gas prices.

Over the last couple of years, I have wondered about the impact B.C. is having on climate change. I think it is immeasurable except for perhaps keeping local air cleaner. On a macro basis, major countries continue to dither on real action.

I would have supported continuing the carbon tax increases had the gas price not shot up already. The current run-up may be a blip due to Libya situation, but I submit high gas prices will be the rule. Why? Because the world economies are still in doldrums and thus the world demand for oil is not at a peak. Even before the Libya-related run-up in price, the price was already around $1.30/litre and that is with our loonie flying high at par with the U.S. dollar.

As the world economies recover, the price of oil will go up for sure and thus the cost of gas.

I believe the high gas prices will continue and will be the norm. Any further increase in carbon tax will be more salt in the wound for the motoring public.

Madam Premier, you have already shown willingness for change by reversing some past government decisions. This too will bode well for the government.