It seems Canadians will have to wait a little longer for more relief at the gas pump.
The Canadian Automobile Association (CAA) currently lists the national average gas price at 171.8 cents per litre, an increase from the 169.1 cents per litre average last week.
“Prices had initially dropped considerably last week after the excise tax was paused. Most Canadians saw a decrease of virtually the entirety of the 10-centilitre excise tax,” said Patrick de Haan, a petroleum analyst at GasBuddy.
“We saw a bit of the relief passed along. I’m glad that Canadians could see that. But unfortunately, now the temporary improvement in prices is rolling back because oil prices continue to rise.”
On April 14, Prime Minister Mark Carney announced a temporary suspension of the federal fuel excise tax, which began last Monday and is set to last until Labour Day.
This also included removing the fuel excise tax on aviation fuels, which Carney stated would “remove up to $0.10 per litre on gasoline and $0.04 per litre on diesel fuel.”
Get daily National news
Carney said the cost of this measure will be $2.4 billion.
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.
De Haan also stated that as the week progressed, the price of oil went up “considerably,” resulting in increases in fuel prices.
Without a deal surrounding the Strait of Hormuz, oil prices will only continue to rise, and elevated fuel prices could be present for “months,” he added.
“This is going to be a trend consumers should expect that prices may continue to climb in the days and weeks ahead until there is some sort of longer-term resolution when it comes to reopening the Strait of Hormuz,” he said.
“Even if the government were to decide to stop collecting HST or GST on fuel tomorrow, that doesn’t prevent the price of oil from going up to potentially offset any of the savings from additional reductions in taxes.”
If years ago we voted to have our gas nationalized, we would not have this issue. Plus, the gas companies are taking advantage of the situation. I knew it would not last a week when Carney froze the tax.
Is anyone actually surprised here..
aside from the brainless liberals of course
Once again I forgot to take my TDS medications…….sorry!
There was a tax freeze? Who knew……..
Fort st john, BC, gas prices went up. didn’t see that coming.
Unless the government polices prices all they did was give the oil companies 10 cents more profit as they condition us to higher prices and added to the counties debt
Duke, Duke, Duke, the forever liberal supporter. This story is about gas prices in Canada not your TDS. Try to stay focused.
Just like we all knew it would.
According these conspiracy right wing nutcase, Carney started the war in Iran. Not their leader, the Orange dictator. Funny bunch.
Right back up to 1.62 per liter.
The Truth is it will save Canadians 2,4 billion.not cost the government.how can people vote for this lire.
We live in Trail BC. Our gas has not dropped 1 cent. What’s that all about. Do better!!!
Amazing that fuel on our Ontario reservations is up to 40 cents a liter cheaper. Thanks Liberals. Really helping out Canadians.
We need better laws. If the fuel at a stations reserve tanks haven’t been refilled, fuel prices should rise until that happens.
It did not ‘cost’ 2.4 billion. That is just 2.4 billion that is not being taken from Canadians so the Liberals can give it away to groups they like.
The big question is why is there an excise tax at all. And if it comes from Canadian drivers, does it all go to Canadian roads? – the answer to that is not a dime.