TORONTO – Gas prices are rising again: the Canadian Automobile Association (CAA) currently reports a national average price of 173.0 cents per litre (yesterday was 171.8), up from 169.1 cents per litre last week. This means that even the fuel excise tax cut is no longer enough to keep prices down.
“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,” Patrick de Haan, a petroleum analyst at GasBuddy, told Global News (here). “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 federal fuel excise taxes, which began last Monday and is set to last until Labour Day (September 7, 2026). The measure also includes the removal of excise taxes on aviation fuels: a $2.4 billion initiative for Canada. However, this major effort is being effectively offset by the ongoing conflict between the United States and Iran, with shipping traffic through the Strait of Hormuz largely disrupted.
Without an agreement, oil prices are expected to continue rising, and fuel could remain expensive for months. “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,” said Patrick de Haan.
Photo by engin akyurt on Unsplash
