The federal government’s pause of excise taxes on gasoline and diesel went into effect Monday as Canadians continue to feel the squeeze of the global oil crisis caused by the Iran war and the closure of the Strait of Hormuz.
Prime Minister Mark Carney announced the gas tax holiday last week, adding that “Canadians are feeling the pressures of everyday expenses right now.”
The pause, which started Monday, will continue until Sept. 7 — right up until the end of the Labour Day long weekend.
The tax holiday will remove up to $0.10 per litre on gasoline and $0.04 per litre on diesel fuel, Carney said, costing the government about $2.4 billion.
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Average gas prices across Canada inched slightly lower on Monday, at $1.69 a litre. While it was still significantly higher than the $1.31 per litre compared to the same time last year, it climbed down from last week’s average of $1.74 per litre.
The suspension is largely due to the ongoing U.S.-Iran war, with the movement of shipments along the Strait of Hormuz having mostly been stalled.
Conservative Leader Pierre Poilievre had urged the government to lift the fuel excise tax, alongside “clean fuel standard and GST surcharges from gas and diesel would save consumers about 25 cents a litre.”
Along with the government’s suspension of the consumer carbon tax, the tax holiday will mean “reduced fuel prices on gas by up to $0.28 per litre,” Carney said.
Since the start of the Iran war, Tehran has blocked the Strait of Hormuz, which accounts for nearly 20 per cent of all oil trade on the planet.
The ceasefire between the U.S. and Iran remains fragile after U.S. President Donald Trump said the U.S. forcibly seized an Iranian-flagged cargo ship that tried to get around a naval blockade.
I’d like to know why we continue to give billions a year in subsidies to big oil companies while they continue to post record profits year after year. In this light, teasing us with a few cents a litre price break is nothing but a cruel joke.
So let’s keep 6 Billion worth of office space up and running and put more cars on the road for public servants to do exactly what they’ve been doing remotely for nearly a decade and with better productivity / work life balance all while heading towards a global energy and economic crisis. There’s some strategic thinking for you! Lol
*And yes, hybrid and remote began long before the pandemic.
Elbows Up Canadians are more than happy to pay carbon taxes to help out the Govt.
Did he really add the lowering of the carbon tax as part of the “tax holiday”?
That was done almost a year ago…. lol
@Charles. Please enjoy your 4-5 months of winter each year. Ha ha
The Iran war is great for the Canadian Oil and Gas Industry and coffers of the provincial producers. Both Carney and Trudeau kicked the industry in the teeth the last decade with anti-development policies
I went to our local Costco this morning and the price was $1.49, last week it was $1.69. On the way there I saw other prices, at $1.74 which were $1.79 a week ago. It looks like the oil industry is cashing in. And you know we will be hearing the big oil companies guys giving us a gooblely goop story about why it is IMPOSSIBLE for them to lower the price. Yup company motto “Never let someone’s misfortune blind you to more profits”
@Charles.
Didn’t Canada just have a mass shouting in Tumbler Ridge, BC. You seem to want to live fear. I bet you got multiple Rona “boosters” also. LOL
@ Csnadians are suckers”
Why are you here? No mass shootings today? Oh wait….
Remember when Canadians thought they were “better off” with the Consumer Carbon tax because Tru-DOH and CBC told them so.
Fuel is so much cheaper in the USA. Canadians are getting gouged by Carney.
Mine stayed the same. What does one expect when there is a removal of $0.10 federal excise tax, and the price of a barrel of oil goes up 7%
That’s sounds great. Unfortunately our worst Premier has added a tax of her very own….
Even Ford (who spent tax $$$ shutting them down) is now restarting our wind turbines.
But of course he tried to buy a private jet for himself unnoticed.
Winds are increasing. Go EV.
And Hormuz closes again.
Wind power is abundant.
And nearly free.
And renewable.
Peeps don’t think.
How many years did the Liberals grift Canadians will the consumer carbon tax? There was a “climate emergency “ then they put it to 0% just to get re-elected.
Price goes down. Price goes up. Price of gas gas down. Price of food goes up. There will never be a drop in price without an increase elsewhere. This is how they always work. Suckers are still born every minute.
I will believe it when I see the 10cents come off the price. Don’t forget companies are now charging a fuel surcharge so let’s see how much will actually come off the price of gas. All smoke and mirrors
It isn’t “costing the government “.
Those are the taxpayers dollars, our money ,that the government in not collecting.
The reality is that the government costs us with their reckless spending, lack of foresight, and waste.
” Hands Up ” !!!
Carney will raise the price of fuel again with additional clean fuel standards. And we wonder why everything in Canada is so much more expensive.