CTF: Hidden gas taxes driving up pump price

OTTAWA, ON: The Canadian Taxpayers Federation is hosting its 24th annual Gas Tax Honesty Day with press conferences across the country to shine a light on all the hidden taxes Canadians pay every time they fuel up.

“Politicians’ hidden taxes are making soaring gas prices even more painful,” said Franco Terrazzano, Federal Director of the CTF. “Federal and provincial politicians could provide significant relief right now by cutting the big tax bill Canadians pay at the pumps.”

The CTF’s 2022 Gas Tax Honesty Report shows that taxes make up to 38 per cent of the pump price. Across Canada, taxes cost 55.1 cents per litre of gasoline, on average. In Montreal, drivers pay six different taxes every time they fuel up.

The federal government and some provinces calculate sales taxes after all the per-litre taxes are added. This tax-on-tax costs drivers an extra 4.1 cents per litre of gasoline, on average.

The federal carbon tax has increased three times during the pandemic and currently costs about 11.1 cents per litre of gasoline.

Prime Minister Justin Trudeau says he will continue to increase the carbon tax until it reaches 37.6 cents per litre of gasoline in 2030. Trudeau also announced plans to impose a second carbon tax through fuel regulations that could add an extra 11 cents per litre by 2030. That would push the total tax bill to 96 cents per litre in 2030. The average tax paid on a 64-litre fill-up will be $61.44 by the end of the decade.

“Taxes already cost Canadians big time at the pumps and Trudeau’s two carbon taxes could soak drivers for nearly 50 cents per litre by 2030,” said Terrazzano. “It’s extremely tone deaf for Trudeau to keep raising the carbon tax when Canadians can barely afford to fuel up their cars now.”

The CTF’s Gas Tax Honesty Report can be found here.