Conservative Leader Pierre Poilievre has urged the government to halt federal taxes on gas and diesel for the rest of the year. Poilievre made this proposal during a news conference at an Ottawa gas station, suggesting a temporary removal of the GST and excise tax on gasoline and diesel. He estimated that this move could lead to savings of approximately 25 cents per liter on gas, urging the government to cover the $5.25-billion cost by reducing unnecessary expenditures.
The call from the Conservative leader comes amid a surge in gas prices in Canada and globally due to the ongoing conflict in the Middle East. Poilievre highlighted that Canadian gas prices are currently about 28 cents higher in Canadian dollars compared to the U.S., attributing the recent increase to the conflict in Iran and long-term high costs to Liberal taxes.
Prime Minister Mark Carney, when asked about potential federal fuel tax cuts, emphasized that the government is closely monitoring gas prices and hinted at providing more details in an upcoming fiscal update. A spokesperson from Finance Minister François-Philippe Champagne’s office echoed Carney’s sentiments, emphasizing the ongoing assessment of measures to support Canadians amidst price fluctuations.
While no specific date has been set for the fiscal update, other countries like Australia and Ireland have already reduced fuel taxes in response to soaring energy prices. Poilievre previously advocated for a fuel tax holiday heading into the summer of 2024, following gas price spikes in certain regions of the country.
Poilievre is scheduled to update Carney on his recent trip to the U.S., where he visited Detroit, Texas, and New York, including an appearance on the Joe Rogan podcast. He stressed the importance of tariff-free trade with the U.S. for Canadians’ economic interests.