Conservative Leader Pierre Poilievre is urging the government to temporarily halt federal taxes on gasoline and diesel for the rest of the year. Poilievre made his proposal during a press briefing at an Ottawa gas station, suggesting a temporary suspension of the GST and excise tax on fuel. He estimated that this move could lead to a savings of approximately 25 cents per liter on gas and urged the government to cover the projected $5.25 billion cost of the tax cut by reducing unnecessary expenditures.
Poilievre’s initiative comes amid a surge in gas prices in Canada and globally due to ongoing conflicts in the Middle East. He highlighted that Canadian gas prices are roughly 28 cents higher per liter in Canadian dollars compared to the United States, attributing the recent spike to global factors but pointing to long-standing high costs in Canada as a result of Liberal taxation policies.
Prime Minister Mark Carney, when questioned earlier this week about potential federal tax reductions on fuel, mentioned that the government is closely monitoring gas prices and hinted at providing more details in an upcoming fiscal update. A statement from Finance Minister François-Philippe Champagne’s office echoed Carney’s remarks, emphasizing ongoing evaluations of measures to support Canadians during this volatile period and mitigate immediate price shocks.
While no specific date has been announced for the fiscal update, other countries like Australia and Ireland have already taken steps to lower fuel taxes in response to escalating energy prices. Poilievre had previously advocated for a fuel tax holiday heading into the summer of 2024 after gas prices surged in certain regions of Canada.
Poilievre also revealed plans to update Carney on his recent trip to the U.S., where he visited Detroit, Texas, and New York, including an appearance on the popular Joe Rogan podcast. He stressed the importance of achieving tariff-free trade with the United States, emphasizing common goals between Canadians and their largest trading partner.