Sask. government facing continued pressure to cut provincial gas tax

The Saskatchewan government faced more opposition pressure Monday to cut the provincial gas tax after Ontario announced a continued reduction of its gas tax for the remainder of 2024.

Ontario drivers have enjoyed a 5.7 cent per litre break at the pumps since the summer of 2022.

“In our upcoming budget, we are going to extend the gas tax cut through to Dec. 31,” Ontario Premier Doug Ford said.

It prompted the opposition NDP to again ask for a gas tax cut in Saskatchewan.

“Now why won’t this premier finally act, cut the gas tax and deliver some relief to the people of Saskatchewan,” NDP leader Carla Beck said.

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Saskatchewan’s current fuel tax is 15 cents per litre for gasoline and diesel and nine cents per litre for propane.

The premier says instead Saskatchewan has stopped collecting the federal carbon tax on home heating fuel.

“Mr. Speaker, over the last two and a half years, the gas tax savings in Ontario have saved families about $328 over two and a half years,” Moe said during Question Period on Monday. “That’s about $128 a year Mr. Speaker. The $400 on carbon tax savings that Saskatchewan families are going to receive annually Mr. Speaker, that outweigh,” Moe continued.

Four Canadian provinces have now offered gas tax breaks to help consumers deal with the cost of living, Manitoba, Alberta, Ontario and Newfoundland.

Moe however pointed out that it’s cheaper to live in Saskatchewan than Ontario.

“For example, a family of four making $75,000, Regina, Saskatchewan ranked number one when it comes to being the most affordable city to live in. Toronto would be number nine, Mr. Speaker. That’s nine out of ten.”

Saskatchewan’s decision to not collect the carbon tax for natural gas and electric home heating might not be of benefit to consumers in the end. The federal government is threatening to cut the carbon tax rebate by an equivalent amount which would leave consumers no further ahead.

-- With files from Drew Postey.