“Canadians are feeling the pressures of everyday expenses right now,” said Prime Minister Mark Carney.
As of Monday, the federal government’s pause of excise taxes on gasoline and diesel is in effect. This tax holiday will remove up to $0.10 per litre on gasoline and $0.04 per litre on diesel fuel.
The tax holiday is expected to cost the government about $2.4 billion. Average gas prices across Canada were $1.69 a litre on Monday, a decrease from last week’s average of $1.74 per litre.
Last year, gas prices were significantly lower at $1.31 per litre. The current situation reflects ongoing economic pressures exacerbated by the global oil crisis.
Gasoline prices in Newfoundland and Labrador fell by 11.5 cents per litre, while diesel prices decreased by 4.6 cents per litre.
The suspension of excise taxes on auto and aviation fuels will last until September 7. However, propane and furnace oil remain exempt from this federal excise tax.
Prime Minister Carney noted that “the tax holiday will mean reduced fuel prices on gas by up to $0.28 per litre.” This reduction comes as the U.S.-Iran war continues to impact global oil prices dramatically.
Details remain unconfirmed regarding how long these price reductions will last or their long-term effects on the market.
Conservative Leader Pierre Poilievre had urged the government to lift the fuel excise tax amidst rising costs for Canadians.
The Strait of Hormuz accounts for nearly 20 percent of all oil trade globally, making it a crucial point in understanding current fuel price dynamics.
This situation is evolving rapidly as consumers await further developments in both domestic policy and international markets.