(Ottawa) Natural Resources Minister Jonathan Wilkinson says the federal government is more focused on stabilizing oil prices by increasing supply than trying to lower prices by offering Canadians a temporary tax holiday gasoline federal government.
Posted at 5:22 p.m.
His comments come as US President Joe Biden plans to drastically cut the federal gas tax south of the border, after other measures to curb rising gas prices failed to work.
If the Biden administration follows through on this plan, it would make Canada the only remaining G7 country not to have recently reduced gasoline excise taxes or offered a subsidy to help lower prices at the pump.
Since Russia’s invasion of Ukraine began driving up global oil prices, the UK, Italy and Germany have all cut excise taxes on petrol, while France and Japan offered subsidies to consumers and fuel companies.
Minister Wilkinson says there are no immediate plans for Canada to join them, noting that Finance Minister Chrystia Freeland’s speech on affordability last week instead pointed to planned increases in government benefit cheques, reductions in child care costs and increases to the Old Age Security pension and the Canada Workers Benefit.
Mr Wilkinson argues that a petrol tax holiday is not entirely ruled out, but the government is currently working domestically and abroad to increase fuel supplies in a bid to bring global oil prices back under control.