Setback for vehicle owners: Petrol, diesel prices may increase in Canada by September

 

 

The temporary fuel tax exemption for vehicle owners in Canada may end soon. With this, it is indicated that fuel prices may increase again from September.

The temporary fuel excise tax exemption announced by the central government is reported to end by September 7. The full tax rate will come into effect from September 8. Prime Minister Mark Carney waived fuel tax from April 20 in the wake of the sharp rise in oil prices following the Iran war. The exemption was 10 cents per liter for petrol and four cents for diesel.

With the reinstatement of the tax, the price of petrol may increase by 10 to 11 cents per liter. Filling a 50-liter tank will cost an additional five to six dollars. Fuel prices are likely to rise further as gas stations switch to more expensive "winter grade" gas by September and supply disruptions in the Strait of Hormuz due to Middle East tensions are likely to push fuel prices higher. The federal government has not yet officially announced a decision on extending the tax break.