Conservative Leader Urges Extension of Fuel Tax Pause Amid Rising Prices

Canadian Conservative Leader Pierre Poilievre has called on Prime Minister Mark Carney to extend a pause on Canada's fuel excise tax, set to resume on Labour Day. The temporary removal of the tax in April was aimed at easing the cost of living for Canadians, but with rising gas prices and high grocery inflation, Poilievre argues that the tax should remain suspended until at least Canada Day 2027. He cites a recent report by the Organisation for Economic Co-operation and Development showing Canada had the highest food price increases in the G7.

In his letter to Carney, Poilievre also points to the ongoing impact of the U.S.-Iran war on worldwide oil prices, which has led to supply disruptions and constraints. The closure of the Strait of Hormuz for cargo traffic due to fear of attacks, as well as damage to neighbouring energy infrastructure, has further contributed to elevated oil prices.

The Canadian Automobile Association reports that the national average price for regular grade gasoline in Canada is currently about CAD$1.67 per litre, up from $1.64 a week ago and from $1.33 at the same time last year. The pause on the fuel excise tax has saved drivers about 10 cents per litre on gasoline and four cents per litre on diesel.

Poilievre isn't the only politician urging Carney to extend the excise tax pause. Ontario Premier Doug Ford has also asked for an extension until at least January 1, or even a permanent suspension of the tax.