The federal government’s excise tax cut on gasoline and diesel is set to expire on Labour Day, amid calls for it to be extended beyond that date.
As of Tuesday, the average cost for the price of gas at fuel pumps in Toronto is 182.9 cents a litre and around $2.30 for diesel. Some industry experts say those numbers could go up further over the long weekend.
Back in April, the federal government announced a suspension of the fuel excise tax on gasoline and diesel until Sept. 7 as gas prices soared due to the Iran war. The tax break saves Canadians 10 cents per litre on regular gasoline and four cents on a litre of diesel.
In early August, Ontario Premier Doug Ford called on Prime Minister Mark Carney to extend the suspension until at least Jan. 1, 2027, or even make it permanent.
Conservative Leader Pierre Poilievre said he wants the excise tax relief extended until at least July 1, 2027, at which time it can be reviewed.
The Canadian Taxpayers Federation is also calling on Ottawa to keep the tax break in place.
“An average family who fills up their minivan about once a week will save about $400 with a gas tax that is not being applied. If you look at someone who fills up their pick-up truck once a week, they save about $470 every single year if there is no federal gas tax,” said Noah Jarvis, the group’s Ontario director, said on Tuesday.
It’s not yet known if the federal government will extend the tax break.
Finance Minister François-Philippe Champagne will be making an announcement on Tuesday afternoon “as part of the government’s efforts to help Canadian families and businesses lower everyday costs,” a release states.
With files from The Canadian Press; and Shauna Hunt, CityNews
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