Breaking it down: Montreal gas prices

MONTREAL — With the falling price of oil and eye-popping gas prices across Canada, many Montreal drivers have been wondering why prices at the pump aren’t as low here as in other cities.

“Montreal has the highest level of tax on gas in North America.”

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If you were thinking drivers here paid higher gas prices than elsewhere, you’re not mistaken. According to Anne-Sophie Hamel from the CAA, Montreal drivers pay the highest level of taxes on gas in North America.

READ MORE: Gas prices plummet toward $1 a litre across Canada

In Canada, Vancouver drivers also pay high levy on gas and the two cities share a common tax tariff: a public transportation tax.

The public transportation tax in the Montreal area applies to any municipality where an Agence métropolitaine de transport (AMT) train has a station, said Hamel, including cities like Laval, Montreal, Lasalle, Saint-Jérôme, Longueuil and Vaudreuil-Soulanges.

The AMT is an umbrella organization that coordinates public transportation services across the Greater Montreal area. The provincial government fixes the tax amount as per the AMT’s request.

READ MORE: AMT train fares to increase 3 per cent in January 2015

According to the CAA, in 2014, Montreal-area drivers supported public transit with a contribution of $1.3 billion through the public transportation tax.

But while this tax boosts what Montrealers pay at the pump, there are many more taxes added on to a litre of gas.

Here’s a look what taxes Montrealers pay:

1. Federal excise tax: 10 cents (applies across Canada)
2. Provincial fuel tax: 19.2 cents (Montreal and major cities)
   This provincial fuel tax is subsidized by the provincial government in other areas of Quebec. Gas retailers in isolated regions in Northern Quebec and areas like Saguenay receive a rebate, paying just 14.6 cents per litre, a savings that they are not obliged to pass on to drivers.
3. Public transportation tax: 3 cents (Greater Montreal area)
   Of this tax, 1.5 cents goes to the AMT and 1.5 cents is redistributed by the AMT to other transit agencies.
4. GST: 5%
5. PST: 9.975%

The CAA told Global News that the average price for a litre of gas in Montreal on January 14, 2015 is 103.9, and of that, 59.6 cents is what drivers pay for gas — the rest is tax.

So, what would a driver in the Greater Montreal area pay in taxes on a 103.9-litre of gas?

Tax breakdown on 103.9-a-litre of gas in Montreal: