News | February 20, 2019

Propane Industry Must Be Allowed To Compete Fairly With Natural Gas

Ottawa, ON (GLOBE NEWSWIRE) - Today is an important day for Ontario propane businesses who are congregating in Queen’s Park to meet with ministers, senior ministerial staff and members of provincial Parliament to discuss significant issues for the propane industry. Propane is a low-emission, affordable and versatile fuel and is vital for Ontario residential, commercial, agriculture, transportation and industrial sectors.

“With the election of a new government in Ontario, the Canadian Propane Association looks forward to establishing a good working relationship with the premier, his cabinet and all MPPs,” said Dan Kelly, Chair, Canadian Propane Association (CPA) Board of Directors. “There are many areas in which the priorities of the propane industry and the policies of the government are very much in line. But there are some files where more work needs to be done to ensure that a vibrant and vital propane industry continues to grow and to serve the people of this province.”

This edition of Queen’s Park Lobby Day 2019 provides an opportunity for members from the Canadian Propane Association to discuss leveling the playing field for propane in Ontario as the government is increasingly supporting the expansion of natural gas only, to the detriment of the propane sector.

“The government must ensure that propane remains competitive and either stop subsidizing natural gas or provide an equivalent subsidy to the competing propane delivery suppliers or to propane customers,” said CPA President and CEO Nathalie St-Pierre. “The propane industry must be allowed to continue to compete on a level playing field with the services in the affected areas without having to increase rates or withdraw from communities entirely.”

The propane industry is at Queen’s Park today to discuss key issues, including:

  1. Tax fairness – Removing the 4.3 cents/litre tax under the Gas Tax Act that propane is subject to while natural gas is exempt. Auto propane is cleaner and healthier than gasoline and diesel; producing 26 per cent fewer greenhouse gases than gasoline; and emitting 98 per cent less particulate matter than diesel vehicles.
  2. Real home energy choice for consumers – Over 200,000 Ontario households rely on home heating oil as their primary energy source in many rural and remote communities. The government should also support them to change to propane, a safe, reliable, cost-effective and cleaner energy choice.
  3. Auto-Propane Expansion – Auto propane is a low-emission, safe, reliable, cost-effective fuel for commercial and passenger vehicles used worldwide. It has fewer greenhouse gas emissions, lower maintenance costs and is less costly than gas or diesel. The government should also support Ontario commercial fleet operators to change to propane to get significant cost-savings and productivity improvements.
  4. Level the playing field: Provide propane with the same advantages as natural gas – Subsidies to the natural gas and liquified natural gas sectors put unsubsidized propane delivery services at a competitive disadvantage. These programs jeopardize the propane industry, particularly in Northern Ontario, resulting in the potential for fewer, affordable, cleaner fuel choices for residents.

The Propane industry is a significant contributor to Ontario’s economy. The more than 125 propane businesses in Ontario provide good paying jobs for over 4,000 Ontarians. Ontario propane sales are worth almost $1.6 billion, supporting over $400 million in GDP. Approximately 60,000 Ontario households rely on propane as their primary source of heating fuel. Over 40,000 commercial, industrial, and agricultural facilities in Ontario rely on propane as a primary energy source; over 37% of Canada’s overall propane use occurs right here in Ontario.

About The Canadian Propane Association
With over 400 members, the Canadian Propane Association (CPA) is the national association for a growing, multi-billion-dollar industry that impacts the livelihood of tens of thousands of Canadians. Our mission is to promote a safe and thriving propane industry that plays a vital role in Canada’s energy sector. To achieve this, we champion propane and the propane industry in Canada and facilitate best practices, safety and a favourable business environment through advocacy, training and emergency response.

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Source: Canadian Propane Association