Canadians feeling the pinch at the pump may soon have a political ally though whether that translates into actual relief is another matter entirely.
Conservative Leader Pierre Poilievre stood before reporters in Ottawa on April 2, making the case that the federal government should eliminate both the GST and excise tax on gasoline and diesel for the rest of the year. According to his office, the move would knock roughly 25 cents off every litre, potentially saving a family of four around $1,200 before the year is out.
The call comes as fuel prices have climbed sharply in the wake of the ongoing conflict in Iran, which has rattled global oil markets. But Poilievre was quick to argue that international turmoil only tells part of the story.
“You cannot explain that through global factors alone,” he said, pointing to the gap between what Canadians and Americans are paying roughly $1.78 per litre here versus $1.50 across the border. He noted that federal excise taxes add about 10 cents per litre, with the clean fuel standard tacking on another seven cents. Strip those away, he argued, and you bring down not just the cost of driving, but the cost of virtually everything else since goods across the country move by truck and rail, both of which run on fuel.
The Conservatives also pointed to moves by other governments facing similar pressures. Australia cut its excise tax in half for three months, and Ireland rolled back its fuel taxes 20 cents per litre on diesel and 15 cents on gasoline through the end of May. The implicit message: Canada has options, and other countries are already using them.
Prime Minister Mark Carney, for his part, acknowledged the problem a day earlier when asked by reporters on April 1. He said the government is “very aware of the sharp increase in gas prices” and that Canada is pushing for de-escalation of the Iran conflict diplomatically while conceding there is only so much Ottawa can do to move the needle on a geopolitical crisis of that scale.
Carney defended his government’s broader affordability record, citing tax cuts benefiting 22 million Canadians and a slate of new social programs. On the specific question of fuel taxes, he stopped short of ruling anything out. “We will look at this as the conflict evolves, and most importantly, at the impact on Canadians. Not saying that’s necessarily the final word,” he said.
The prime minister also used the moment to reiterate a longer-term vision: expanding Canada’s energy infrastructure, including renewable projects in Nova Scotia and a pipeline running from Alberta to the British Columbia coast.
Whether Ottawa moves on fuel taxes in the near term remains to be seen. With the conflict in Iran showing no signs of quick resolution and fuel prices unlikely to fall on their own, the political pressure on the Liberal government to act is only likely to grow.
