Drivers say 10-cent gas price drop still not enough as excise tax suspended

Gas prices went down 10 cents a litre on Monday as the federal government suspended the fuel excise tax in an attempt to ease the pain at the pumps.

But as U.S. President Donald Trump says there is “no time frame” on ending the war in Iran and opening the Strait of Hormuz, it looks like Canadians will be riding the roller coaster of gas prices for the foreseeable future.

“When I started, the price of gas was 26 cents a litre,” says Saeed Ahmad who has worked as a Blue Line taxi driver in Hamilton for 33 years.

Thursday, the price at an Esso gas station on John Street South — where Ahmad was parked — was $1.67.9.

He and many of his colleagues switched to driving hybrid gas and electric vehicles a few years ago, so the price at the pumps would have less of an impact on their bottom line.

“When I had a Dodge Caravan I was putting in around $110 of gas per day. Now I’m putting in around $55, $60 dollars,” Ahmad said. “So the hybrid helps a little bit, and on top of that, this 10 cents a litre change will help too.”

The 10-cents-a-litre change refers to the federal fuel excise tax.

Prime Minister Mark Carney announced recently he would be suspending the tax starting on Monday until Labour Day as the U.S.-Israel-Iran war is wreaking havoc on global prices.

People at the gas pumps in Hamilton on Thursday say it was good to see the gas prices lower by 10 cents a litre on Monday, but they say it is still not enough.

WATCH MORE: Iran war drives up fuel costs, raising air travel and shipping prices in Canada

“Even if I’m saving [an] extra $10, $20 from this, it makes sense,” one driver said. “I can buy small things with that, like maybe biscuits for my kids. Hopefully the government can do more for us.”

Another person at the pumps said the costs are “making it hard to make ends meet.”

A third driver noted that the current cost is twice the price they used to pay.

“I have a trip to Montreal tomorrow, and I’m not looking forward to that bill,” they say.

En-Pro predicts the price of gas will go up another five cents a litre at midnight.

There is no indication that prices will stop rising any time soon, as Trump said Wednesday night there is “no time frame” for an end to the war.

The federal labour secretary of state was at the Blue Line in Hamilton Thursday.

CHCH News asked if the government would extend the excise fuel tax suspension beyond Labour Day if the war continues, John Zerucelli said they are watching the situation.

“We’ll continue to monitor the situation and continue to have Canadians’ backs to fight for affordability,” Zerucelli said.

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