Some Canadian provinces are offering fuel-tax breaks amid soaring costs for gasoline and diesel at the pumps.
In Prince Edward Island, the provincial government has suspended its fuel tax for the next four months to help give motorists and businesses a break from high costs.
The move in P.E.I. comes days after Alberta announced its own fuel-tax suspension, as high-energy costs add to affordability issues for consumers.
P.E.I.’s fuel-tax suspension takes nearly $0.09 per litre off the cost of gasoline at the pumps and $0.14 a litre off the cost of diesel.
The provinces have begun taking action after Ottawa introduced legislation to continue its fuel excise tax holiday through Jan. 31, 2027.
The action by Canada’s federal government lowers gas prices by $0.10 per litre and $0.04 a litre for diesel fuel.
P.E.I.’s government said its fuel-tax break will last until the same date as the federal move, before it returns at 50% of its regular rate on Feb. 1, 2027, and then is fully restored on April 1.
British Columbia currently has the highest fuel-tax rates in the country. According to Natural Resources Canada, B.C.’s tax adds $0.27 to a litre of gas and $0.28 per litre to diesel.
Outside B.C., Quebec has the highest provincial fuel-tax rates, at $0.19 per litre on gas and $0.20 on diesel.
Alberta’s provincial government has said that it will drop its $0.13 per litre fuel tax to zero starting on Oct. 1 of this year.
The average price for regular gasoline at the pumps in Canada right now is $1.85 per litre, according to CAA. The average price for diesel fuel across Canada is $2.75 per litre.
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