Fuel prices rise in Canada despite tax cuts; 'Summer Blend' takes a hit

 

 

Fuel prices are soaring in Canada despite the government's decision to temporarily suspend the federal excise tax. The main reason for this is that the more expensive 'Summer Blend' fuel has arrived at gas stations instead of the 'Winter Blend' fuel used during the winter. This change results in an increase of about 10 cents per liter. Economists point out that this will eliminate the benefit that the government announced through the tax cuts.

The fuel price increase is due to the requirement to use a low-butane blend to reduce evaporation and prevent environmental pollution during the summer. Internationally, the war situation in Iran and traffic disruptions in the Strait of Hormuz are affecting global oil prices. Although the government has decided to waive excise taxes from April 20 to September 7, fuel prices are likely to remain high until July or August, said Dan McTeague, president of Canada for Affordable Energy. Fuel prices are expected to remain above $1.75 per litre across Canada. He added that the only way to provide relief to ordinary people is to eliminate the GST in addition to the tax relief.