The Quebec government plans to charge a royalty on petroleum products in an effort to combat greenhouse gas emissions.
The tax is expected to generate $200 million a year, and the proceeds will go into a green fund to fight climate change.
It’s conceivable that oil companies will end up passing on the extra cost to consumer.
It is one of 24 measures the province announced Thursday as part of a plan called Quebec and Climate Change — A Challenge for the Future.
The Charest government says the plan will cut Quebec’s greenhouse gas emissions to levels just short of the targets in the Kyoto Accord.
The government’s plan is reduce greenhouse gases in Quebec by 10 million tonnes a year by 2012.
It also includes new emissions standards for passenger vehicles.