The Canadian Taxpayers Federation is urging governments across Canada to eliminate carbon taxes and reduce fuel taxes to help lower gas prices for consumers.
The group argues that high taxes are a major contributor to rising costs at the pump, noting that in some cities, taxes can total as much as 65 cents per litre.
They also criticize the structure of fuel pricing, pointing out that Canadians often pay sales tax on top of existing fuel taxes—effectively a “tax on tax” that increases overall costs.
In addition to direct taxes, the federation highlights federal fuel regulations that require lower carbon content in fuels. Producers who fail to meet these standards must buy credits, costs that are passed on to drivers. These rules currently add up to about seven cents per litre, and could rise to 17 cents by 2030, according to the Parliamentary Budget Officer.
The group also argues that carbon pricing on industries—such as oil, gas, and manufacturing—ultimately leads to higher consumer prices, as businesses pass those costs along.
Overall, the federation is calling on politicians to scrap carbon taxes, cut fuel taxes, and eliminate layered taxation in order to make fuel more affordable for Canadians.
