Toronto: Ontario Premier Doug Ford has urged Prime Minister Mark Carney to make the federal fuel tax cut permanent or extend it until at least January 1, 2027, to cushion families from rising fuel prices. Ford made public a letter he addressed to the Prime Minister regarding the issue.
The Premier’s intervention comes with just a month remaining before the current tax relief expires. Ford emphasized that rolling back the relief during high fuel prices would impose a heavy financial burden on households and everyday consumers.
In April, Prime Minister Mark Carney announced a temporary exemption of the federal fuel excise tax until Labour Day as a measure to control rising fuel costs. This provided a discount of 10 cents per liter on gasoline and 4 cents per liter on diesel.
Ford stated that reinstating the tax while prices remain elevated would severely impact the public, making the continuation of the tax break essential to relieve inflation pressure on families.
Follow the Ontario Model, Says Ford
Ford highlighted that the Ontario government had previously introduced a 5.7-cent provincial gas tax cut. By making this cut permanent last year, the province managed to keep its fuel tax at 9 cents per liter. He urged the federal government to follow Ontario’s lead and make the tax relief permanent.
Opposition Demands GST Exemption
Meanwhile, opposition parties have stepped up criticism against the federal government over fuel taxes. Federal Conservative Leader Pierre Poilievre demanded that, in addition to the fuel excise tax, the federal government temporarily suspend GST on fuel. Poilievre also called for the complete elimination of the Clean Fuel Standard and industrial carbon taxes.
