Big Savings at the Pump Ahead as Carbon Tax Ends for P.E.I. Fuel April 1

Good news is coming for P.E.I. residents as the Island Regulatory and Appeals Commission has announced that the consumer carbon tax will be eliminated from fuel prices starting next month.

Significant Savings on Fuel Prices

Beginning April 1, drivers on Prince Edward Island can expect a reduction of about 20 cents per litre on gasoline and 24 cents on diesel. This change follows an order by Prime Minister Mark Carney, who made the repeal of the federal fuel charge his priority after taking office on Friday.

The removal of the carbon tax means that the current tax of 17.6 cents per litre on gasoline and 21.4 cents on diesel will no longer be added to the prices. Additionally, since the Harmonized Sales Tax (HST) is applied to the carbon tax, the actual savings at the pump will be slightly higher.

Carbon Tax Context

Although the consumer carbon tax will be abolished, residents will still receive the carbon rebate for the month of April. The carbon pricing scheme was originally introduced by former Prime Minister Justin Trudeau in 2019 as a way to encourage Canadians to reduce their fossil fuel use and adopt greener energy solutions. This initiative aimed to help lower emissions and combat climate change.

However, in light of rising inflation and increased living costs, the promise by opposition leader Pierre Poilievre to eliminate the carbon tax resonated with many voters, contributing to its repeal.

It is worth noting that there is no carbon tax applied to home heating oil, as the federal government exempted it over a year and a half ago.

This tax change may bring welcome relief to many Islanders as they adjust to fluctuating fuel prices.

savings, tax, fuel