Poilievre Calls for ‘Fuel Tax Holiday’ From Victoria Day to Labour Day

The prices for a litre of diesel and various grades of gasoline are seen on a gas pump at a Petro-Canada station, in Burnaby, B.C., on March 2, 2022. Darryl Dyck/The Canadian Press

Conservative Party Leader Pierre Poilievre is calling on the federal government to suspend all taxes on gasoline and diesel between Victoria Day on May 19 and Labour Day on Sept. 2 to help Canadians save money and retain their summer vacations amid high inflation.

Speaking to reporters in Vancouver, Mr. Poilievre said many families could be forced to cancel their summer vacation plans due to the rising cost of living, noting the record number of visits to food banks across the country.

“The vast majority of Canadians are struggling just to eat, heat and house themselves. A vacation is not even in the cards. And when they show up at the pumps to gas up if they do go on a family vacation, they’re forced to pay $2 a litre here in British Columbia. It’s not much better anywhere else,” Mr. Poilievre said.

The Tory leader called on Prime Minister Justin Trudeau to adopt his proposed suspension of the federal fuel tax, GST, and the carbon tax on fuel, saying, “it will reduce gas prices by 35 cents a litre, allowing families to get on the road and go off to their favourite campsite, maybe a cottage or a cabin. Do some fishing, some hunting or just get away for a weekend.”

He added that the federal government could offset the costs by cutting back on consultant spending, claiming Prime Minister Trudeau’s government has spent $21 billion per year on consultants, a figure also reported by the Globe and Mail last year.

“Cut back on those consultants, put the money back in the pockets of Canadians. Give Canadians a fuel tax holiday of 35 cents a litre from Victoria Day, all the way to Labour Day,” Mr. Poilievre said.

Prime Minister Trudeau reacted to the proposal at his own press conference saying, “I think the conversation should be had with the provinces as well, who are responsible for a significant part of excise taxes and taxes on gasoline across the country.”

He added that the Tory leader was also referring to the carbon tax and accused Mr. Poilievre of wanting to scrap the carbon tax rebate, which he said would help Canadians with rising living costs.

In recent years other countries have taken similar measures, reducing fuel prices to offset rising costs to consumers.

Both Spain and Italy took measures to reduce the price of gasoline as energy prices spiked following the 2022 Russian invasion of Ukraine. Italy’s government reduced the cost per litre but added a temporary tax to energy firms, which were posting large profits at the time, to recoup the cost.

The Spanish government announced a €16 billion plan which included spending money to reduce prices by 15 cents per litre and prompted energy companies to contribute 5 cents per litre. The measures in both countries were temporary.

Fuel costs in Canada are well above pre-pandemic levels, according to the website GasBuddy, which tracks prices at gas stations across Canada. In some parts of British Columbia, prices rose to as high as $2 per litre as recently as last month.