Ottawa drivers may want to hold off on filling up their tanks for a day, as the federal government lifts the carbon tax on fuel prices.
Dan McTeague, President of Canadians for Affordable Energy, predicts a 20-cent per litre drop in gas prices across Ottawa and Ontario starting Tuesday. This reduction follows the government’s decision to remove the federal carbon tax.
The change comes after Finance Minister Carney’s announcement on March 14, confirming that starting April 1, the Canada fuel charge would be eliminated. “We will be eliminating the consumer fuel charge immediately,” Carney stated.
With the carbon tax removal, gas prices in Ottawa are expected to drop to 135.9 cents per litre, compared to the current average of $1.55.
For those who use 30 to 40 litres of gas a week, the savings could be around $10. Diesel users could save closer to $15. Larger vehicles like delivery trucks that consume 100-150 litres a week could see significant savings.
While Ottawa and other Ontario cities will benefit, Quebec, with its own cap-and-trade system, will not see a reduction in prices. Gas prices in Toronto will drop by 20 cents per litre, while Kingston sees a 9-cent drop.
Federal carbon pricing applies in all provinces and territories except Quebec, British Columbia, and the Northwest Territories.
