OTTAWA — Conservative Leader Pierre Poilievre is calling on the Carney government to eliminate federal fuel taxes for the rest of the year as surging oil prices tied to the war in Iran drive up the cost of gas.
Poilievre’s proposal would see the federal excise tax and five-per-cent GST on gas and diesel removed for the remainder of 2026, and Ottawa’s clean fuel regulations — which are aimed at lowering the carbon intensity of gas and diesel — axed permanently.
The Conservatives estimate that the relief measure would save Canadians 25 cents per litre at the pump.
“Canadians deserve affordable fuel and food,” read a statement from Poilievre in a news release.
“Seniors should be able to enjoy a worry-free drive to see grandkids, parents should not stress about filling the minivan for hockey practice and workers should be able to fill their trucks stress-free. That is why Conservatives call for zero tax on gas the rest of the year.”
The Conservative leader is set to speak about his plan at a news conference in Ottawa later Thursday morning.
Poilievre’s demand comes as the effective closure of the Strait of Hormuz prompted by the war in Iran has led to a spike in global oil prices.
On Tuesday, Prime Minister Mark Carney didn’t rule out lowering gas taxes in response to the increased costs, telling reporters his spring fiscal update would be “the right time to fully answer that question.”
The Conservatives point to other countries — including Australia, Spain, and Ireland — that have already temporarily slashed some fuel taxes in response to energy shocks.
But Poilievre says global conflicts are not solely to blame for rising prices in Canada.
“While the Iran war explains the sudden rise in world oil prices, it does not explain why Canadians pay so much more than Americans. Liberal taxes force Canadians to pay 28 cents-a-litre or 20 per cent more than in the United States,” the Conservative leader is quoted as saying in the release.
“High Liberal fuel taxes drive up the cost of groceries, which are already rising the fastest in the G7.”
A Conservative-led government would pay for the domestic relief — which the party estimates would save Canadians $5.25 billion — through Poilievre’s longtime “dollar-for-dollar” pledge: for each dollar of new government spending, a dollar of savings would have to be found elsewhere.
That would include reducing what the party calls wasteful spending on programs such as the gun buyback, the federal bureaucracy, consultants and foreign aid, as well as major projects like the Liberals’ $90-billion ALTO train initiative, which Poilievre says has yet to lay any track.
