The Canadian Taxpayers Federation is calling on the Carney government to make its gas tax cut permanent following today’s Parliamentary Budget Officer report confirming gas tax cuts save families hundreds of dollars a year.
“It’s common sense that cutting taxes on fuel bring prices down at the pump for Canadians and now the PBO confirms it,” said Noah Jarvis, CTF Ontario Director. “Canadians are struggling with high gas prices and cutting gas taxes is the best way to provide much needed relief for families.”
Canadian families will save up to $468 because of the Carney government’s gas tax suspension, according to the PBO.
The PBO estimates taxpayers will save $4.9 billion in total with the government’s temporary gas tax cut.
Gas prices have sharply risen since March 2026, with prices currently at about $1.82 per litre nationally.
Leger polling found that among those with an opinion, 71 per cent of Canadians opposed the government hiking fuel taxes before the Carney government extended the cut.
Prince Edward Island Premier Rob Lantz suspended his province’s gas tax on Sept. 26. while Alberta Premier Danielle Smith suspended her gas tax on Oct. 1.
“Gas taxes raises prices at the pump and at the grocery store, and Canadians can’t afford life getting more expensive shortly after Christmas,” Jarvis said. “The Carney government needs to make the gas tax cut permanent to lock in these savings for Canadians.”
The CTF recently testified at the House of Commons’ finance committee, arguing for a permanent suspension of the federal gas tax.
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