How much could you save on gas if Ontario suspends its fuel tax?
Gas prices in Ottawa have reached another all-time high, with the average above $1.84 per litre on Tuesday.
The continuing sticker shock at the pumps has some experts calling for provinces, including Ontario, to cut fuel taxes.
Alberta announced Monday it would temporarily suspend its provincial gasoline tax starting April 1. The tax, which adds 13 cents per litre to the cost of gasoline, will be completely removed if oil prices surpass $90 U.S., and partially so if they are between $80 and $90, Premier Jason Kenney announced.
Ontario’s fuel tax adds 14.7 cent per litre to the price of gas.
Premier Doug Ford campaigned in 2018 to reduce the price of gas by an average of 10 cents a litre. But he appeared to back away from that promise recently, saying he would instead match any deduction the federal government makes.
A spokesman for Energy Minister Todd Smith reiterated that stance on Tuesday.
"The Premier and Minister Smith have been clear that the federal government must delay their planned carbon tax increase on April 1, 2022 to 11 cents a litre," Palmer Lockridge said in a statement. "Premier Ford has already cut gas prices by 4.3 cents and will lower it even further if the federal government cuts taxes, ensuring savings will not be wiped out by federal tax increases."
Ford also pledged as recently as November to lower gas taxes by 5.7 cents by cutting the province’s excise tax on fuel, but has not done so.
The Ford government scrapped Ontario’s cap-and-trade system when they came into office, but that prompted the federal government to impose a carbon tax on the province, wiping out those savings.
The federal carbon tax adds 8.8 cents a litre to the price of gas in Ontario, though taxpayers can apply to get a quarterly rebate.
How much would Ottawa drivers pay for gas today if some of these cuts were put in place? Here’s a breakdown:
Average price of gas in Ottawa: 184.2/L
If province suspends fuel tax: 169.5/L
If province cuts prices by 10 cents a litre: 174.2/L
If province cuts excise tax on fuel: 178.5/L
No federal carbon tax: 175.4/L
It’s important to note that governments are dependent on the revenue from fuel taxes. Cutting them would have an impact, especially in a volatile global market caused by Russia’s invasion of Ukraine and other factors.
The U.S. announced Tuesday they will ban Russian oil imports, a move likely to push energy prices even higher.
CTVNews.ca Top Stories
Fluid in eye cells can 'boil' if you watch the eclipse without protection: expert
Millions of people in parts of Eastern and Atlantic Canada will be able to see the rare solar eclipse happening on April 8. But they should only look up if they have proper eye protection, experts say.
He didn't trust police but sought their help anyway. Two days later, he was dead
Jameek Lowery was among more than 330 Black people who died after police stopped them with tactics that aren’t supposed to be deadly, like physical restraint and use of stun guns, The Associated Press found.
CRA no longer requiring 'bare trust' reporting in 2023 tax return
The Canada Revenue Agency announced Thursday it will not require 'bare trust' reporting from Canadians that it introduced for the 2024 tax season, just four days before the April 2 deadline.
Being harassed at work? What to consider when deciding what to do next
If you've been the victim of workplace harassment, it can be difficult to feel you're not alone - and even more difficult to know where to go with a complaint.
Sunshine list: These were the Ontario public sector's highest earners in 2023
Ontario released its annual sunshine list Thursday afternoon, noting that the largest year-over-year increases were in hospitals, municipalities, and post-secondary sectors.
Grandparent scam: London, Ont., senior beats fraudsters not once, but twice
It was a typical Tuesday for Mabel Beharrell, 84, until she got the call that would turn her world upside down. Her teenaged grandson was in trouble and needed her help.
Half of Canadians support TikTok ban, with U.S. concerns 'trickling' north: poll
A new poll indicates 51 per cent of Canadians support banning the social media app TikTok, after a U.S. bill aiming to do just that passed in the House of Representatives.
Where is the worst place for allergy sufferers in Canada?
The spring allergy season has started early in many parts of Canada, with high levels of pollen in some cities already. Experts weigh in on which areas have it worse so far this season.
More unauthorized products for skin, sexual enhancement, recalled: Here are the recalls of this week
Health Canada and the Canadian Food Inspection Agency recalled various items this week, including torches, beef biltong and unauthorized products related to skin care and sexual enhancement.