VIDEO: You're Going to Pay More For Gas Starting Today
People living in Manitoba, Ontario, Saskatchewan and New Brunswick are paying a little more for gasoline, heating fuel and other items today.
The federal government's carbon tax is going into affect in for the four provinces that have refused to impose their own carbon pricing system.
The tax adds 4.4 cents to the price of a litre of gasoline and about four cents to a cubic metre of natural gas.
The tax will also increase the cost of propane, butane, aviation fuel and other goods, and is set to increase every year until 2022.
The federal government is also putting in place tax rebates that it says will give people back the extra money they're paying.
Residents of the four provinces will be getting rebates on their income tax returns. The rebates start at $128 annually but vary between provinces, and increase for people with spouses or dependents at home.
The federal government says the carbon tax is a sensible way to protect the environment — put a price on activities that pollute to discourage emissions, and give back most or all of the money through income taxes.
Questions also remain about whether the tax will survive court challenges underway in two of the rebel provinces.
An Ontario court is set to hear the government's constitutional challenge of the carbon tax next month.
A Saskatchewan court has already heard similar arguments and is expected to deliver its verdict shortly.
— With files from the Canadian Press