ST. JOHN’S, N.L.: The Canadian Taxpayers Federation is calling on Premier John Hogan to make the temporary gas tax cut permanent as Newfoundlanders and Labradorians continue to face high gas prices, according to the 27th annual Gas Tax Honesty Report.

“More than a third of the price Newfoundlanders and Labradorians pay at the pump is taxes and the looming expiration of the provincial gas tax cut will only make things worse,” said Devin Drover, CTF Atlantic Director. “The provincial government’s temporary cut has provided much-needed relief, but if it’s allowed to expire families will face an immediate and painful increase in their cost of living.”

Drivers in Newfoundland and Labrador pay about 42 cents in federal and provincial taxes per litre of gasoline. For a 64-litre fill-up, that works out to about $27 in taxes alone.

The federal government’s gas tax costs 10 cents per litre. It also charges a hidden carbon tax embedded in fuel standards that adds 5.4 cents per litre to the cost of gasoline.

The provincial gas tax is currently 7.5 cents per litre, down from 14.5 cents after the provincial government introduced a temporary cut in June 2022. That cut is set to expire on March 31, 2026.

“Hogan has the power to prevent this tax hike and keep more money in the pockets of hardworking Newfoundlanders and Labradorians,” said Drover. “Taxpayers are calling on him to make the gas tax cut permanent so families aren’t hit with higher costs at the pump next spring.”

The rest of the gas tax burden comes from the Harmonized Sales Tax, which is charged on top of the price after other taxes are already added. The HST costs about 19 cents per litre.

“With so much of the price at the pump going to taxes, the last thing families need is for one of those taxes to go back up,” said Drover. “Taxpayers need leadership from Hogan to make sure that doesn’t happen.”