Liberals to pause carbon pricing on heating oil, beef up heat pump incentives


Prime Minister Justin Trudeau has announced that the government will double the carbon price rebate for rural Canadians beginning next April. 

Trudeau also says there will be a temporary, three-year pause to carbon pricing measures that are applied to deliveries of heating oil, beginning in two weeks. 

A government press release says the change will mean that households that use heating oil would save about $250, on average, at the current rate. 

Through a pilot project, low- and median-income households in Atlantic Canada are to receive an upfront payment of $250 if they currently heat their homes with oil but sign up for a heat pump through a joint federal-provincial government program. 

The amount of federal funding that eligible homeowners can receive for the installation of a heat pump, which the government says can save households save some $2,500 on their energy bills, is also going up.

Trudeau says it means that lower-income households will be able to get an average heat pump for free.

Banner image: THE CANADIAN PRESS/Sean Kilpatrick

This report by The Canadian Press was first published Oct. 26, 2023.