2025 Carbon Tax Update: How It Impacts Propane Prices

2025 Carbon Tax Changes:
What It Means for Propane Pricing

Canada's 2025 carbon tax policy changes directly impact propane costs, offering savings opportunities and potential rebates. Learn how these changes affect your propane pricing and what it means for your energy expenses.

2025 Carbon Tax Changes: What It Means for Propane Pricing

The Canadian government introduced a carbon tax to help reduce emissions by adding a cost to fuels such as propane, gasoline, and natural gas. As of April 1, 2025, the federal fuel charge previously applied to propane has been eliminated, directly reducing propane costs for users across Canada. Here’s what you need to know.

WHAT IS THE CARBON TAX:

The carbon tax was established by the Canadian government to promote cleaner energy choices by adding costs to fossil fuels like propane, gasoline, and natural gas. Provinces and territories adopted either a carbon tax or cap-and-trade system unless exempted.

WHAT CHANGED IN 2025?

Starting April 1, 2025, the federal fuel charge previously added to propane was removed from the carbon pricing program. As propane will no longer carry the federal carbon tax, this change will lower the total price of propane on your bills, resulting in savings for our Superior Propane customers, depending on your province.

HOW DOES THE CARBON TAX AFFECT YOUR PROPANE PRICE?

Effective April 1, 2025, the Government of Canada removed the federal fuel charge on propane in provinces and territories where it previously applied, including Newfoundland and Labrador, Prince Edward Island, Nova Scotia, New Brunswick, Ontario, Manitoba, Saskatchewan, Alberta, Nunavut, and Yukon. As a result, propane deliveries made on or after this date will no longer include a carbon tax fee on your invoice.

Superior Propane clearly itemizes all charges on customer invoices, so you’ll notice that the carbon tax line item disappears from invoices for refills made April 1 or later. Any carbon tax amounts incurred before April 1, 2025, will still appear and remain payable.

For full details, visit the Government of Canada’s official announcement.

ENERGY-SAVING TIPS TO MAXIMIZE PROPANE SAVINGS

Even with the carbon tax removed, there are still extra steps you can take to further reduce your energy bills. Propane is already one of the most cost-effective fuels available, and with our flexible pricing plans, you can maximize your savings. However, there's always room for additional savings by making your home more efficient while maintaining comfort.

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Seal Your Home: Weather-strip doors and windows and seal any leaks with caulking. Proper sealing prevents drafts, reduces heat loss, and keeps your home comfortable.

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Maintain Clean Gutters: Regularly cleaning your gutters helps prevent moisture buildup, ice dams, and potential damage, ensuring optimal efficiency.

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Harness Natural Sunlight: Let sunlight naturally warm your home by opening curtains during daylight hours. Close them at dusk to retain heat and maintain comfortable indoor temperatures.

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Automate Your Thermostat: Use a programmable thermostat to adjust temperatures automatically. Lowering your thermostat between 18°C and 20°C overnight or when you're away conserves propane and reduces your heating bills.

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Regularly Track Propane Usage: Monitor your propane consumption monthly using mySUPERIOR™. Tracking your energy usage helps identify opportunities to save and allows you to adjust your habits accordingly.

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Schedule Annual Maintenance: Regular servicing of your heating equipment ensures peak efficiency, reduces propane usage, and extends equipment lifespan.

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Insulate Properly: Ensure your attic, basement, and walls are adequately insulated to prevent heat loss and reduce propane consumption significantly.

Learn more on how to save on energy bills on our Propane Efficiency Tips blog.

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mySUPERIOR™ CUSTOMER PORTAL

mySUPERIOR™ puts your propane account at your fingertips. With mySUPERIOR, you can schedule a delivery, view SMART* Tank™ levels, make payments and more online. Connect to your propane services even faster with our mobile app, available on both Google Play and the App Store.

Learn about mySUPERIOR

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SMART* Tank™ Wireless Monitoring

Managing your propane supply has never been easier. Our remote tank monitoring technology called SMART* Tank™ ensures you always have the fuel you need. SMART* Tank™ detects when it’s almost time for an LPG refill and notifies Superior Propane to automatically schedule the propane delivery. You will also receive text or email notifications with up-to-date propane levels and can view readings, delivery details, and historic usage online at mySUPERIOR.ca.

Learn about SMART*Tank™

FAQs on the Canadian Carbon Tax Updates and Impact on Propane

What is carbon tax?

A carbon tax is a government-imposed fee aimed at reducing greenhouse gas emissions by increasing the cost of fossil fuels, promoting the shift towards cleaner energy.
How much is the carbon tax rebate?

The rebate amount and eligibility depends on your province and other factors in order to qualify. Visit the official Government of Canada rebate information page to check eligibility.
How do carbon tax rebates work after the 2025 changes?

Carbon tax rebates continue to help Canadians offset costs associated with carbon taxes on fuels still subject to charges. Rebate amounts depend on province, household size, and fuel usage. Visit the Government of Canada's rebate page for details.
Will my propane bill decrease now that the carbon tax is gone?

Propane deliveries made on or after April 1st will no longer be subject to carbon tax. On deliveries that took place prior to April 1, 2025, the federal carbon charge was displayed as a separate line item on customers’ delivery tickets. On deliveries made as of April 1, the line item for the federal fuel charge will no longer be displayed.

^{^}600 litres offer available to new residential or small commercial Superior Propane customers only. 600 litres free requires a minimum of 2,500 litres annual propane consumption, SMART^*Tank^TM wireless sensor installed on tank with automatic delivery set-up and mySUPERIOR^TMonline account access registration. Credit for free litres will be applied to account up to two weeks following the first propane delivery. To accept the offer, eligible customers must enter into a General Retail Agreement with a five-year initial term, subject to early termination fees as set out in the offer terms and conditions. Please contact us for further details. This offer is subject to applicable fees, costs, tariffs, surcharges and taxes as set out in any eligible customer’s General Retail Agreement. This offer cannot be combined with any other offer, may only be used once per eligible customer, and is not transferable. Offer ends July 31, 2025.

**1,200 litres one time bill credit applicable only to business heat customers switching from oil heat to propane heat. Customers must have a minimum annual consumption of 2,500 litres and install a propane furnace or boiler through a Superior Propane Certified Partner. Credit for free litres will be applied to account up to two weeks following the first propane delivery. To accept the offer, eligible customers must enter into a General Retail Agreement with a five-year initial term, subject to early termination fees as set out in the offer terms and conditions. Please contact us for further details. This offer is subject to applicable fees, costs, tariffs, surcharges and taxes as set out in any eligible customer's General Retail Agreement. This offer cannot be combined with any other offer, may only be used once per eligible customer, and is not transferable. Offer ends July 31, 2025.

†The No-Run-Out Guarantee only applies to residential customers who meet the following qualifications: Must have a SMART^*Tank^TM installed on a tank storage greater than single 420 and no portable storage, be on an Automatic Delivery plan, with clear access to the tank and account in good standing. Additional terms and conditions apply. Please call for details.

‡Cost savings is for informational purposes only. Calculations were based on an average customer in a detached home up to 2,000 sq. ft. heating at 74% efficiency. Propane rates were representative of a period in time and are subject to change. Oil prices are based on publicly posted Statistics Canada historical prices. Includes all service and delivery charges. HST not included.

§Superior Propane does not remove the oil tank. Our HVAC partners or their partner network can facilitate the removal.

2025 Carbon Tax Changes:
What It Means for Propane Pricing