Measure will see 10 cents on a litre of gas, 4 cents on litre of diesel removed starting Monday
A day after sweeping three byelections in Ontario and Quebec that gave him a majority in the House of Commons, Prime Minister Mark Carney has announced that he is temporarily removing the federal excise tax on gas and diesel.
The move means that the cost of gas will drop by ten cents on a litre of gasoline and four cents per litre of diesel starting Monday and lasting until Labour Day.
In a statement, the government said the move "is a responsible measure that will reduce operating costs for truckers and businesses in the food, agriculture, housing, construction, and delivery sectors."
The current national average for a litre of gas is just over 176 cents, up from just over 126 cents a little before the United States and Israel launched their attack on Iran and oil stopped flowing through the Strait of Hormuz.
About a fifth of the world's oil transits through the strait from states in the Persian Gulf including Iran, but that passage has been all but shut by the threat of Iranian drones and mines since the conflict began.
When talks between the United States and Iran to end the war and reopen the strait failed, the U.S. announced it would begin a naval blockade of Iranian ports and attempt to reopen the straight to traffic from other countries.
That announcement saw prices dip slightly but the crisis in the strait continues and volumes have yet to resume to anywhere near the pre-war averages.
Posted by IHateTrains123
6 Comments
“Let’s just subsidise the demand for the one last time! I promise! Subsidise the demand for the last time, and we are going to solve the supply and demand problem!”
A former central banker has decided to subsidize demand 🥴🫠
The government also cut its transit fund by $5 billion, while the largest city’s transit system already has the highest proportion of its funding based on farebox recovery in the world, and the city and regional transit systems are deep in maintenance debt and severely curbing their expansion plans, including electrification
Boooooo.
Actually reducing deadweight loss during a shortage is a good thing? Why are people acting like this a massive L policy? Am I missing something here?
Canada should really be a leader in electrification efforts with all the Hydro and Nuclear assets we have along with the mostly urban population but for some god forsaken reason we just can’t give up our gas guzzlers.