Drivers see relief at gas pumps as temporary federal tax cut goes into effect

There will be some relief at the pumps starting Monday as a temporary federal tax cut takes effect.

Prime Minister Mark Carney made the announcement last Tuesday that his government would suspend the federal excise tax on gasoline and diesel until labour day

“We’re also removing the fuel excise tax on aviation fuels,” said Carney. “This will remove up to 10 cents per litre on gasoline and 4 cents per litre on diesel fuel.”

Carney’s announcement came 12 days following Pierre Poilievre’s call on the liberal government to eliminate all fuel taxes until the end of the year.

In the question period after Carney’s announcement, Poilievre called out the prime minister for not backing down enough.

“We put the pressure on the prime minister and he’s partially backed down, removing only one of those taxes and only for a third of the year,” said Poilievre. “Why doesn’t he follow our full plan to reduce gas prices by 25 cents a litre, by getting rid of all the taxes for all the year?”

WATCH MORE: Poilievre calls for gas tax relief for rest of year

In Canada, fuel consumers are subject to a few different levies.

There’s a fixed federal excise tax of 10 cents a litre on gasoline and 4 cents a litre on diesel, and the federal GST of 5 per cent.

Provincial taxes also apply: in Ontario, that’s 13 per cent HST and a fixed 9 cents per litre.

The fixed federal excise tax is what the liberal government is putting on hold.

“That’s real relief for you and your family at the end of the day,” said Carney. “Now, to be clear, today’s cut to the fuel excise tax is a responsible, temporary measure.”

There are two different blends of gasoline, with the summer blend being more expensive than the winter blend by roughly ten cents per litre.

The summer blend is what is currently available at the pumps as of April 15th.

The supply switches back to the winter blend mid-September, after the Carney government’s tax cut phases out.

WATCH MORE: Carney announces planned suspension of fuel excise taxes until Labour Day