Canadians Urge Gas Tax Cuts as Prices Soar
Canadians are increasingly frustrated with soaring gasoline prices and want Prime Minister Mark Carney to take action. A recent Nanos Research Group survey found that nearly 39% of respondents believe cutting fuel taxes is the best course of action, followed by increasing investment in long-term energy alternatives at 22%. Temporary financial relief measures such as rebates and credits for drivers also ranked high.
The price of gasoline in Canada has surged 48% since January 2026 due to global energy costs, which have been exacerbated by the war in Iran. The current federal tax on gasoline is 10 Canadian cents per litre, plus an additional 5% goods and services tax.
Conservative Leader Pierre Poilievre has called for the levies to be suspended, but economists warn that cutting gas taxes could have fiscal risks, including a $7 billion annual revenue hit. The federal government is already set to run a $65.4 billion deficit this fiscal year.