Toronto, Canada — Sept. 2 — This afternoon, the Carney government is set to announce plans to extend its gas tax suspension until Jan. 31, 2027. The Liberal government’s gas tax cut had previously been scheduled to expire next week.
The Consumer Choice Center supports the Carney government’s move, as lower fuel costs means lower costs for hard-pressed consumers who are having difficult times making ends meet. At the same time, lower fuel costs means lower transportation costs, which should help with food inflation, which has been stubbornly high in Canada.
Still, consumers are looking for more certainty and the federal government ought to look at an indefinite suspension of the federal fuel tax.
“Canadians desperately need relief at the pumps, so it’s good to see the Carney government step up with a fuel tax cut extension, but an indefinite suspension, given the current trade and geopolitical environment, would have been a better choice,” said Jay Goldberg, North American Affairs Manager at the Consumer Choice Center.