The reduction of the consumer carbon tax to zero took effect on April 1, the same day it was set to increase by over 20 cents per litre. The fuel charge had added more than 17 cents to a litre of gasoline in some provinces.
The change is the result of a directive Prime Minister Mark Carney signed last month, shortly after being sworn in. Carney, once a strong proponent for carbon pricing, pledged during the Liberal leadership campaign to remove the consumer carbon tax, calling it “very divisive for Canadians.”
On April 1, price tracking website GasBuddy had the national average for a litre of regular unleaded gasoline at $1.52 per litre, a drop of 3.1 cents, around mid-afternoon ET.
During a campaign stop in Winnipeg on April 1, Carney referenced his changes to the consumer carbon tax, saying it was one of the ways his government “will make your life more affordable.” An early federal election has been triggered for April 28.
“I’m not a career politician, I’m a pragmatist. So when I see something that doesn’t make sense, something that doesn’t work, I change it,” he said. “On my first day as prime minister, I ended the consumer carbon tax. Today, that change takes effect.”
Gas Wizard, an online tool for predicting gas prices, provides a breakdown of regular fuel prices across various cities. With more than 30 years of recorded data, Gas Wizard was founded by Dan McTeague, former Liberal MP and executive director of the advocacy group Canadians for Affordable Energy.
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The price prediction tool indicates that Ontario and parts of the Atlantic provinces saw some the biggest drops in regular diesel prices on April 1, about 20 cents per litre.
In Toronto and Ottawa, regular gas prices fell below $1.40 per litre on April 1, after staying above $1.50 per litre in recent weeks, according to Gas Wizard.
Fredericton saw a similar drop, with prices falling to $1.44 per litre after being at least $1.60 last week. In Charlottetown, prices dipped just below $1.50 per litre, down from nearly $1.70 a few days earlier. In St. John’s, N.L, prices hovered just over $1.50 per litre after peaking at $1.70 in recent days.
Ontario Premier Doug Ford welcomed the change, calling the consumer carbon tax the “worst tax ever.”
“At midnight tonight, Canada is finally done with the federal carbon tax, the worst tax ever,” Ford wrote in a social media post on March 31. “Now, we need to see every cent of savings passed onto hard-working Canadians at the pumps.”
Victoria and Vancouver saw fuel prices drop by roughly 18 cents per litre, though both remain among the highest in Canada. On April 1, prices were just above $1.70 per litre in Victoria and over $1.75 per litre in Vancouver, following recent highs that surpassed $1.90 per litre.
The British Columbia government cancelled the province’s consumer carbon tax through legislation, effective April 1, to align with the new federal carbon tax rate. The province said it will ensure “big polluters continue to pay.”
Regina and Winnipeg both saw a drop of about 18 cents per litre, according to Gas Wizard. In Regina, prices fell to nearly $1.34 per litre, down from around $1.52 in previous days, while in Winnipeg, prices dropped to about $1.31 per litre, from nearly $1.49.
Saskatchewan Premier Scott Moe has been a vocal opponent of the carbon tax. Last week, he announced his government would pause the industrial carbon tax, effective April 1, aiming to make his province the first in Canada to become fully carbon tax-free. In a social media post, Moe referred to April 1 as “Carbon Tax Freedom Day” for Saskatchewan.
Calgary and Edmonton experienced more modest declines, with prices gasoline dropping between 9 and 11 cents per litre. As of April 1, fuel prices in both cities were below $1.40 per litre, down from nearly $1.49 per litre in Edmonton and just under $1.50 in Calgary in previous days.
Premier Danielle Smith, also a strong opponent of the tax, credited the federal Conservatives for the April 1 reduction of the consumer carbon tax to zero.
“After years of relentless pressure from [Conservative Leader Pierre Poilievre] and provincial conservative governments across the country, the Liberal/NDP coalition in Ottawa has finally scrapped its punishing consumer carbon tax which made Canadians poorer,” Smith said in an April 1 social media post.
“We expect retailers to pass on these savings in full. We are watching and will hold them accountable so Albertans get the tax break they deserve.”
The federal Conservatives have strongly opposed the carbon tax, saying it makes the cost of living more expensive. They have argued that shifting costs to businesses will ultimately affect consumers, as those costs are likely to be passed down.
Poilievre has said a Conservative government would remove both the consumer and the industrial carbon tax, and would use “technology, not taxes” to reduce emissions.
The Canadian Press contributed to this report.
