Gas prices rose to over $2 per litre in many stations in Montreal on Thursday, April 2, 2026. THE CANADIAN PRESS
Conservatives urge Ottawa to cut fuel taxes as Iran tensions push gas over $2/L, promising Canadians up to $1,200 in yearly savings.
Conservatives Demand Gas Tax Relief as Prices Soar
OTTAWA — Canadians are feeling the pinch at the pumps, and the Conservative Party wants Ottawa to step in. On Thursday, Conservative Leader Pierre Poilievre called for federal relief by suspending gas and diesel taxes for the rest of 2026.
According to Poilievre, eliminating the fuel excise tax, clean fuel standard, and GST on gasoline and diesel could slash prices by roughly 25 cents per litre. That translates to about $20 saved per fill-up and nearly $1,200 for the average family of four by year’s end.
Why Prices Are Rising
Gas prices in Montreal and other parts of Quebec recently climbed past $2 per litre. While Poilievre acknowledged that the spike stems from the ongoing war in Iran, he stressed that Canada’s long-term high fuel costs are driven by Liberal taxes.
Since the U.S. and Israel’s attack on Iran on Feb. 28, crude oil flows through the crucial Strait of Hormuz have been disrupted, cutting regional energy production. President Donald Trump announced continued military strikes, sending U.S. crude oil prices above US$110 per barrel.
Canadians Paying More Than Americans
Poilievre noted that Canadians currently pay about 20 per cent more for gasoline than Americans, due in part to higher taxes and a weaker Canadian dollar. “Affordable energy is the lifeblood of a strong economy,” he said. He pointed to other countries, like Australia, Spain, and Ireland, that have lowered fuel taxes to ease the burden on citizens.
How Ottawa Could Fund Relief
The Conservative proposal would cost roughly $5.25 billion in lost tax revenue. Poilievre suggested offsetting the amount by cancelling select programs and projects, including the controversial Toronto-Quebec City high-speed rail project.
He also recommended trimming bureaucracy, consulting costs, and foreign aid, while rolling back gun control initiatives that target law-abiding Canadians. The full high-speed rail line, managed by Crown corporation Alto, is projected to cost $60–$90 billion, with completion aimed for 2037.
Political Reactions
Prime Minister Mark Carney told reporters the government is closely monitoring fuel prices and may address the issue during the upcoming spring fiscal update, though no date has been set.
Meanwhile, NDP MP Gord Johns said town halls in his riding reveal strong public demand for relief, with many suggesting oil companies should bear the cost given their record profits.
Poilievre concluded, “Every penny we can reduce in taxes is a penny back in the pocket of Canadians who earned it. It’s time the government pinches its pennies so Canadians don’t have to.”
