Canadian Prime Minister Justin Trudeau announced today, Thursday, that the Canadian government will double the discount rate on pollution prices in rural areas, and implement a temporary three-year pause on the federal carbon price on heating oil shipments in all jurisdictions where federal fuel charges apply.

The rate of climate action incentive payments in rural areas will increase from 10 to 20 percent of the baseline amount starting in April 2024.

The temporary pause on heating oil will begin within 14 days, and is expected to save the average household using heating oil $250 at the current rate.

The federal government is also rolling out plans to facilitate the transition for Canadians to electric heat pumps for heating their homes, starting with Atlantic Canada first.

The Prime Minister made this major announcement, supported by his Atlantic gathering, which has seen divisions over the Liberal carbon pricing plan.

Amid the current cost of living crisis, the Liberals have been facing pressure—specifically from Atlantic and rural MPs, as well as regional politicians and opposition members—to push for a tax exemption on home heating fuel.

Recently, Trudeau and Conservative leader Pierre Poilievre exchanged accusations regarding this issue, with the Prime Minister defending his carbon pricing plan as "above and beyond everything else, a plan about affordability."