Natural Resources Minister Jonathan Wilkinson said the federal government is more focused on stabilizing oil prices by increasing supply than trying to lower prices by offering Canadians a temporary holiday from the federal oil tax. ‘essence.
His comments come as US President Joe Biden plans to drastically cut the federal gas tax south of the border, after other measures to curb rising gas prices failed to work.
If the Biden administration follows through on this plan, it would make Canada the only remaining G7 country not to have recently reduced gasoline excise taxes or offered a subsidy to help lower prices at the pump.
Since Russia’s invasion of Ukraine began driving up global oil prices, the UK, Italy and Germany have all cut excise taxes on petrol, while France and Japan offered subsidies to consumers and fuel companies.
Ottawa has chosen other paths
Minister Wilkinson says there are no immediate plans for Canada to join them, noting Finance Minister Chrystia Freeland’s speech on affordability last week instead pointed to increases government benefit cheques, reductions in child care costs and increases to the Old Age Security pension and the Canada Workers Benefit.
Mr Wilkinson argues that a petrol tax holiday is not entirely ruled out, but the government is now working domestically and abroad to increase fuel supply in a bid to regain control over prices world oil.
Source: Radio-Canada
