Canada’s pipeline subsidies continue to grow due to low tolls
A recent report shows Canadians may lose more than $18.8 billion due to the government's low toll rates for the Trans Mountain pipeline, with the oil industry reaping the benefits.
Mitch Anderson reports for DeSmog.
In short:
- The government bought the Trans Mountain pipeline in 2019 but failed to update toll rates, leaving taxpayers responsible for billions in costs.
- Oil companies pay far below market rates, creating an $18.8 billion subsidy, or about $1,200 per Canadian household.
- Raising tolls now could lead to legal challenges or companies abandoning contracts, complicating efforts to recoup taxpayer money.
Key quote:
“The bottom line is the oil industry should be paying for the full capital cost, not the taxpayer.”
— Tom Gunton, Simon Fraser University professor and author of the International Institute of Sustainable Development report
Why this matters:
With Canada committed to eliminating fossil fuel subsidies, the public bears an enormous financial burden while oil companies profit. This raises questions about the government's priorities in balancing economic and environmental responsibilities.
Read more: Biden's battle against enduring fossil fuel tax breaks
