Poilievre urges Carney to keep fuel excise tax suspended until Canada Day

Conservative Party leader Pierre Poilievre has urged Prime Minister Mark Carney to maintain a temporary suspension of Canada's fuel excise tax until Canada Day, according to a letter sent to Carney on Sunday. The tax, which is set to resume on Labour Day, was temporarily lifted in April and will expire on September 7. In a letter obtained by Global News, Poilievre argued that the tax should remain paused until at least Canada Day 2027, citing the current high cost of living and rising gas and grocery prices.

He pointed to a recent Organisation for Economic Co-operation and Development report that showed Canada had the highest food price increases in the G7. Global oil prices remain high due to the Iran war and supply disruptions, with West Texas Intermediate hovering close to US$82 per barrel. The Canadian Automobile Association reports that the national average price for regular-grade gasoline is about CAD$1.67 per litre, up from $1.64 a week ago and from $1.33 a year ago.

Poilievre has been advocating for the extension of the tax freeze, asking Carney to cancel the hike in an earlier letter dated August 6. The Conservative leader has also called for Ottawa to remove all taxes on gas, which he claims would save Canadians even more money. Other politicians, including Ontario Premier Doug Ford, have also called on Carney to extend the fuel excise tax pause, with Ford asking Carney to keep the suspension in place until at least January or consider making it permanent.

The prices consumers pay for gasoline and diesel are influenced by factors such as global crude oil supply and demand expectations, as well as various taxes and charges businesses may pass on to consumers. Bringing back the excise tax could result in an additional 10 cents to 11 cents per litre at the pump, according to Dan McTeague, president of Canadians for Affordable Energy.