Giving you a break with zero tax on gas

By Hon. Pierre Poilievre
Battle River-Crowfoot MP

Since the Iran war began over a month ago, global oil prices have surged, leading to gas prices rising by 35 per cent across Canada. While the war explains the sudden rise in prices around the world, it does not explain why Canadians pay so much more for gas than Americans.

On the first day of April, the average price for gas in the U.S. was just $1.50 per litre, even after converting to Canadian dollars. North of the border, the average price across our country was $1.78 per litre. That is almost 20 per cent more.

Global factors do not explain this difference. Instead, it is the result of Liberals taxing Canadians again and again for fuel. There is the fuel excise tax that adds 10 cents per litre and the Clean Fuel Standard that adds 7 cents per litre. On top of that, the GST adds another 8 cents per litre.

These taxes add up to an additional 25 cents per litre that you are paying for gas. That is why I put forward a plan to have zero federal tax on gas and diesel by removing the excise and sales tax for the rest of the year, and eliminating the fuel standard tax and industrial carbon tax permanently.

Conservatives want seniors to be able to fill their tanks to visit their grandchildren worry-free. We want farmers and agricultural producers to grow affordable food with affordable diesel and gasoline to fuel their tractors, combines and trucks.

Other countries have already taken action to reduce taxes on fuel and lower prices for consumers. Australia cut its excise tax in half for three months. Spain cut its sales tax on gas and fuel. Ireland cut its excise duty on diesel by 20 cents and by 15 cents per litre on gasoline.

The government can cut the tax without losing revenue. Former Liberal economic adviser Tyler Meredith estimated that for every $10 increase in the price of a barrel of oil, the federal government receives roughly $2 billion in additional revenue.

With oil trading roughly $45 to $50 higher than before the Iran war, the federal government is projected to collect $9 billion to $10 billion in additional revenue. Using just $5.25 billion of this could remove all federal taxes on gas and diesel and deliver relief at the pumps.

Suspending these taxes would lower costs by about 25 cents per litre on gasoline and 21 cents per litre on diesel. That is a savings of roughly $20 every time a parent fills up a minivan, and more than $1,200 for a family of four by the end of the year. Savings would be even greater for families in rural Canada.

That would not just lower costs at the pumps, but also reduce the price of goods shipped by truck or train. Cutting the fuel tax would lower the cost of many everyday items and make paycheques go further.

That is how Conservatives aim to address local cost pressures so farmers can grow more, producers can sell more and Canadians can keep more of their money.