Prime Minister Mark Carney has announced a temporary suspension of Canada’s federal fuel excise tax, effective from April 20 until September 7. This decision follows the Prime Minister’s recent success in securing a majority government through the byelections held on Monday.
Details of the Fuel Excise Tax Suspension
During a news conference in Ottawa, Carney confirmed that the suspension would also cover aviation fuels. The measures will lead to a reduction of:
- $0.10 per liter on gasoline
- $0.04 per liter on diesel
In total, the elimination of the fuel excise tax, alongside the previous removal of the consumer carbon tax, aims to decrease gasoline prices by up to $0.28 per liter. Carney stated that the financial implications of this initiative would cost the government approximately $2.4 billion.
Impact of Rising Oil Prices
Carney acknowledged the financial struggles many Canadians are facing due to rising everyday expenses. He emphasized that this measure is intended to provide immediate relief and act as a “bridge to tomorrow.” The suspension is particularly relevant amidst ongoing tensions related to the U.S.-Iran conflict, which have disrupted shipments through the Strait of Hormuz.
Political Reactions
Conservative Leader Pierre Poilievre has also voiced support for lifting the fuel excise tax. He argues that removing the tax, along with the clean fuel standard and GST surcharges on gasoline and diesel, could save consumers about 25 cents per liter.
Current Fuel Prices
As of now, the average gas price in Canada stands at $1.73 per liter. This figure marks a decrease from $1.81 just a few days prior. However, it remains significantly higher compared to the price of $1.29 from the same period last year and $1.53 from a month ago, according to the Canadian Automobile Association (CAA).
