Prime Minister Mark Carney's freeze on the federal excise tax on gasoline has done little to provide sustained relief at the pump. One week after the suspension began, the national average gas price has increased, now standing at 171.8 cents per litre, up from 169.1 cents per litre last week.
Initially, prices dropped by nearly the full 10-cent excise tax when the measure took effect on April 14. However, this relief was short-lived. Petroleum analyst Patrick de Haan of GasBuddy notes that rising global oil prices, exacerbated by the ongoing conflict involving Iran and stalled shipments through the Strait of Hormuz, are now driving fuel prices upward.
Carney announced the temporary suspension of the federal fuel excise tax, which also applies to aviation fuels, is set to last until Labour Day. The government estimates the cost of this measure at $2.4 billion. Experts warn that without a resolution to the Strait of Hormuz situation, elevated fuel prices could persist for months, potentially offsetting any savings from tax reductions.