Sharp drop in gas prices across Ontario

Gas prices across Ontario saw a sharp decline overnight following the elimination of the federal consumer carbon tax on April 1.

The levy was previously set at $80 per tonne, but it has increased yearly since it was first imposed in 2019. Most recently, it equated to 17.6 cents on each litre of gasoline and roughly $4 for each gigajoule of natural gas burned for home heating.

Roger McKnight, Chief Petroleum analyst with En-Pro International, says the HST portion could also influence the price of gas. McKnight also predicts the price of diesel fuel will drop by 21 cents a litre. This will impact other parts of the economy, like shipping food, as those goods are moved via diesel transport.

Tuesday’s gas price in cities will be the lowest since December 2022, when the cost at the pumps was 133.9 cents a litre. The previous low was in December 2021 (132.9 cents per litre) and May 2021 (127.9 cents per litre).

“At midnight tonight, Canada is finally done with the federal carbon tax, the worst tax ever,” Premier Doug Ford wrote in a post shared on X. “Now, we need to see every cent of savings passed onto hard-working Canadians at the pumps.”

One of Prime Minister Mark Carney’s first actions when he took office last month was to do away with the consumer carbon charge.

“We will be eliminating the Canada fuel charge and the consumer fuel charge immediately,” Carney announced on March 14.

The drop should be reflected quickly at the gasoline pumps, though swings in crude prices or refinery downtime may offset it.

The final Canada Carbon Rebate will be paid starting April 22 for those who file their 2024 tax returns before Wednesday. For those filing after that date, the rebate will be sent after their returns are assessed.

During the Liberal leadership race, Carney pledged to end the consumer price and said he would bolster the industrial price paid by big polluters.

With files from The Canadian Press