JAY GOLDBERG: Carney cuts gas taxes and Canada’s premiers should follow suit  

Unfortunately, Carney didn’t go as far as the Opposition Conservatives wanted him to go

Published Apr 16, 2026  •  Last updated 18 minutes ago  •  3 minute read

Gas at the pump. Photo by Postmedia file

Prime Minister Mark Carney finally has his coveted majority. And his first move as the leader of a majority government was to deliver much-needed relief for Canadians.

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Earlier this week, Carney announced plans to suspend the federal gas excise tax from April 20 until Labour Day. The federal excise tax is 10¢ per litre of gasoline and 4¢ per litre of diesel, so over the next number of months, Carney’s plans could mean substantial savings for taxpayers.

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“We’re building a stronger, more resilient and more independent Canadian economy,” said Carney. “As we build, we’re cutting your taxes, reducing the cost of your homes and providing relief at the pump. We cannot control what other nations do. We’re focused on what we can control — building Canada strong for all.”

A family filling up a minivan and a sedan once a week stands to save roughly $13 weekly at the pumps. Spread over the course of more than four months, that will translate into more than $200 of savings.

While $200 may not sound like much these days, every little bit helps. A recent survey reported that nearly half of Canadians say they’re $200 away from not being able to pay their bills, so this could have a meaningful impact on millions of Canadians.

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Importantly, lower fuel taxes also mean lower operating costs for truckers and businesses, including in the food, agriculture, housing, construction and delivery sectors. Canadian taxpayers should see this relief cascade throughout the economy.

Opposition’s plan could’ve saved Canadians more

Unfortunately, Carney didn’t go as far as the Opposition Conservatives wanted him to go. Conservative Leader Pierre Poilievre recently laid out a plan to save Canadians even more money at the pumps, by not only suspending the federal gas excise tax, but also the so-called clean fuel standard and the federal sales tax on gasoline.

Poilievre’s proposal would have meant saving some 25¢ per litre at the pumps. And he had pushed the government to suspend those taxes for the remainder of 2026 rather than just for the summer.

Had Poilievre’s plan been put into action, Canadian families could have saved closer to $1,000.

And, again, because any relief on fuel taxes cascades throughout the economy, savings would have been greater elsewhere as well.

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But any action from the Carney government to reduce high gas prices is welcome news.

This should now put the onus on Canada’s premiers to step up to the plate.

Fiscal situations make relief untenable

As of right now, no provincial government in the country has stepped up to offer hard-pressed taxpayers relief. While some provincial governments cut gas taxes a few years ago, including Premier Doug Ford’s government in Ontario, none have come out with a plan similar to Carney’s.

The reason most provincial governments are giving as to why they can’t deliver gas tax relief is that their current fiscal situations make such relief untenable.

Every provincial government, like Ottawa, is currently awash in red ink.

Yes, deficits across Canada are large. And they are a major problem.

But the answer to that problem doesn’t lie in doing nothing to help taxpayers. The answer lies in finally cutting back on government spending.

In fact, Carney’s gas tax cut announcement ought to have been paired with spending cuts to ensure the federal deficit doesn’t get further out of whack.

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And that’s exactly what the provinces should do if they want to help struggling taxpayers.

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Deficit hawks have been warning that large deficits have consequences. One obvious consequence is that debt gets passed on to our kids and grandkids. But another clear cost is that governments don’t feel they have the fiscal room to deliver relief to taxpayers when it is clearly necessary.

Carney took the easy way out by cutting taxes without also cutting spending, which will simply mean more debt for future generations. If Canada’s premiers don’t want to add to provincial budget deficits, which is more than reasonable, it’s time for them to come up with a plan to tighten their belts so that taxpayers can receive some real relief.

Jay Goldberg is the Canadian affairs manager at the Consumer Choice Center

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