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Propane subsidy sought for home heating

Propane is a popular home-heating option in rural areas that don't have access to natural gas.
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NORTHWESTERN ONTARIO -- Rural homeowners who rely on oil-fired furnaces would pay lower heating costs and emit less carbon if they switched to a propane furnace, says the association that represents the country's propane suppliers.

The catch is the cost of converting from oil to propane isn't exactly chicken feed, often coming in at $4,000 or more before taxes.

That's why the Canadian Propane Association says it was at Queen's Park on Tuesday, trying to convince MPPs that a provincial subsidy could help defray the cost of converting to a cheaper, cleaner fuel.

Propane is a popular home-heating option in rural areas — like parts of Neebing and Conmee — that don't have access to natural gas.

"We feel that Northern MPPs do understand this issue," association president Shannon Watt said.

The province should level the playing field, said Watt, who noted that it already provides subsidies that offset the cost of electricity.

NDP MPP Lise Vaugeois (Thunder Bay-Superior North) said earlier that her party agrees that propane subsidies could offer a short-term solution.

A spokesman for Conservative MPP Kevin Holland (Thunder Bay-Atikokan) said he didn't immediately have a response on Tuesday.

When asked about the same issue last fall, the spokesman said Holland, a former Conmee mayor, needed time to study the issue.

Watt's association represents more than 200 propane distributors, retailers and wholesalers, as well as propane-related appliance manufacturers and service providers.

Though propane is currently cheaper than oil as a furnace fuel, it has, since the COVID-19 pandemic, risen substantially in price.

Some customers who live across the Thunder Bay district, including those near the city, have said they're paying more than $1 per litre compared to 70-80 cents a few years ago.

Unlike natural gas and electricity, propane isn't regulated in Ontario; the price is subject to market whims.

Watt said her association occasionally receives an earful from customers on the issue of price but said she couldn't speak to it specifically. She noted that several consumer staples have gone up in recent years, including food, which has had an impact on overall "affordability."

However, the association has called on the federal government to drop the GST on propane.

Last fall, the Liberal government said Atlantic Canada residents who heat with oil would be temporarily exempt from the federal carbon tax. Watt said propane users should have a similar break.

She hoped to meet with 15 Ontario MPPs on Tuesday and planned another visit to the legislature to state the association's case later this year.


The Chronicle Journal / Local Journalism Initiative




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