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Canadian Propane Association pushes for fair competition

February 22, 2019 By    

The Canadian Propane Association (CPA) met with ministers, senior ministerial staff and members of the provincial Parliament (MPPs) to discuss the propane industry as part of its Queen’s Park Lobby Day 2019. The meeting allows association members to discuss opportunities for propane in Ontario, Canada.

“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,” says Dan Kelly, CPA board of directors chair. “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.”

According to the association, Ontario’s government increasingly supports natural gas expansion 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,” says Nathalie St-Pierre, CPA president and CEO. “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.”

Other topics the CPA will discuss include:

  • Tax fairness: removing the 4.3 cents per liter tax under the Gas Tax Act that propane is subject to while natural gas is exempt.
  • Real home energy choice for consumers: government support to convert the over 200,000 Ontario, Canada, homes that use heating oil as its primary energy source.
  • Autogas expansion: Canadian government support to Ontario, Canada, commercial fleet operators to convert to propane.
  • Level the playing field: provide propane with similar natural gas subsidies to propane subsidies.

According to the CPA, there are more than 125 propane operations in Ontario, Canada, with over 4,000 employees. Propane sales are worth about $1.6 billion, and about 60,000 Ontario households use propane as a primary heating source. Additionally, the CPA says over 37 percent of Canada’s overall propane use is from Ontario.

*Featured photo: Canadian Propane Association

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About the Author:

Joe McCarthy was an associate editor at LP Gas Magazine.

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