{"id":77010,"date":"2026-08-12T12:04:49","date_gmt":"2026-08-12T12:04:49","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2026\/08\/12\/posthaste-mark-carneys-gas-tax-holiday-ends-soon-should-he-extend-it-or-axe-the-tax-altogether\/"},"modified":"2026-08-12T12:04:49","modified_gmt":"2026-08-12T12:04:49","slug":"posthaste-mark-carneys-gas-tax-holiday-ends-soon-should-he-extend-it-or-axe-the-tax-altogether","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2026\/08\/12\/posthaste-mark-carneys-gas-tax-holiday-ends-soon-should-he-extend-it-or-axe-the-tax-altogether\/","title":{"rendered":"Posthaste: Mark Carney&#039;s gas tax holiday ends soon. Should he extend it or axe the tax altogether?"},"content":{"rendered":"<p> \n<br \/><iframe loading=\"lazy\" title=\"Why oilsands majors are holding back on expansion\" width=\"1080\" height=\"608\" src=\"https:\/\/www.youtube.com\/embed\/BmE4kHd3C9Y?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/01\/fp-posthaste-LOGO-01132023.jpg\" title=\"\" \/><\/p>\n<p> Prime Minister Mark Carney probably didn\u2019t think that after suspending the federal excise tax on gasoline, diesel and jet fuel about a month into the start of the United States-Iran war , they would still be at loggerheads six months later and prices at the pumps would still be high. <\/p>\n<p> But the Sept. 8 deadline for the tax, which adds 10 cents to the price of a litre of gasoline and four cents to a litre of diesel, to restart is in sight and pressure is mounting on Carney to either completely rescind the tax or extend the suspension into the new year. <\/p>\n<p> Ontario Premier Doug Ford has called on the prime minister to, if not permanently axe the tax, then at the very least suspend reintroducing it until 2027. <\/p>\n<p> \u201cThe suspension, which is due to expire after Sept. 7, brought much-needed relief to people struggling with the rising cost of living and ongoing economic uncertainty caused by U.S. tariffs,\u201d he said in a letter on Aug. 7. <\/p>\n<p> The national average price for a litre of gas including taxes rose to a high in mid-May of $1.98 a litre. Since then, it has come down to $1.70. Excluding taxes, which can vary from province to province, the average price sat at $1.39 per litre on Aug. 11, down from a high of $1.65, according to Kalibrate Technologies Ltd. <\/p>\n<p> Ford isn\u2019t the only one calling for Ottawa to rethink reinstating the excise tax. <\/p>\n<p> A poll released by the Canadian Taxpayers Federation (CTF) last week said 63 per cent of people oppose the tax being added back to prices at the pump. <\/p>\n<p> \u201cCarney needs to permanently cut the gas tax because Canadians can\u2019t afford to pay more to fuel up their vehicles and also pay higher prices for everything that is trucked to store shelves,\u201d Franco Terrazzano, CTF federal director, said. \u201cCarney needs to listen to Canadians and confirm that he will not be hiking gas taxes in September.\u201d <\/p>\n<p> But not everyone is onboard with the idea. <\/p>\n<p> <span class=\"transcript-space\">\u201cI<\/span><span class=\"transcript-word has-highlight\">t\u2019s<\/span><span class=\"transcript-space\"> <\/span><span class=\"transcript-word has-highlight\">sensible<\/span><span class=\"transcript-space\"> <\/span><span class=\"transcript-word has-highlight\">to<\/span><span class=\"transcript-space\"> <\/span><span class=\"transcript-word has-highlight\">let<\/span><span class=\"transcript-space\"> <\/span><span class=\"transcript-word has-highlight\">this<\/span><span class=\"transcript-space\"> <\/span><span class=\"transcript-word has-highlight\">ride<\/span><span class=\"transcript-space\"> <\/span><span class=\"transcript-word has-highlight\">out<\/span><span class=\"transcript-space\"> <\/span><span class=\"transcript-word has-highlight\">and<\/span><span class=\"transcript-space\"> <\/span><span class=\"transcript-word has-highlight\">not<\/span><span class=\"transcript-space\"> <\/span><span class=\"transcript-word has-highlight\">renew<\/span><span class=\"transcript-space\"> <\/span><span class=\"transcript-word has-highlight\">it,\u201d <\/span> Ali Jaffery, chief economist at KPMG Economics, said. <\/p>\n<p> He said \u201cthe worst is behind us\u201d in terms of the increase in energy prices and the Canadian economy is in better shape than back in April when the suspension came into effect. <\/p>\n<p> \u201cMaterial slack\u201d in the economy \u2014 meaning it produces less than it is able to \u2014 has since tightened, he said, and the inflation shock has also not been as great as feared. <\/p>\n<p> Canada\u2019s headline inflation rate currently stands at 2.8 per cent, which is near the top end of the Bank of Canada target range of one per cent to three per cent. But core measures of the consumer price index that policymakers follow have been slowly cooling. <\/p>\n<p> Douglas Porter, chief economist at Bank of Montreal, is of two minds on the fuel tax. <\/p>\n<p> \u201cIt\u2019s not a no-brainer to extend it,\u201d he said, adding that the tax suspension cost Ottawa more than $2 billion in revenue \u2014 not a \u201ctrivial\u201d amount \u2014 with a full-year holiday costing more than $6 billion. <\/p>\n<p> \u201cI could see the argument for a temporary extension, while we\u2019ve still got uncertainty around the Strait of Hormuz and relatively high fuel prices,\u201d he said. \u201cIf I were Ottawa, I would be cautious about making it permanent.\u201d <\/p>\n<p> Porter is also worried that overall inflation is too high and said anything that can cool inflation expectations at a critical juncture for the economy is a good idea. <\/p>\n<p> Of course, adding 10 cents back on a litre of gas means 10 cents that won\u2019t be in Canadians\u2019 pockets. <\/p>\n<p> \u201cIt hurts, no doubt about it. It just maybe hurts less than what we might have expected,\u201d Jaffery said. <\/p>\n<p> He thinks a reviving job market will help people to reabsorb the hit from higher prices. <\/p>\n<p> Statistics Canada on Friday said the economy generated 75,000 net new positions. Average hourly wages are also rising, though the increases have been slowing. For example, in July they rose three per cent, down from 3.7 per cent in June. <\/p>\n<p> \u201cWith the direction that we\u2019re headed, (people) will be able to absorb this,\u201d Jaffery said. \u201cBut, yes, no doubt about it, the average household is not going to be happy, nor should they be, about higher prices at the pump.\u201d <\/p>\n<ul class=\"related_links\">\n<li>Posthaste: Trump might think Canada is nasty, but most Americans don&#8217;t<\/li>\n<li>Posthaste: The share of homes being built that Canadians can buy is plummeting<\/li>\n<\/ul>\n<hr \/>\n<p> <em><strong> Sign up here to get Posthaste delivered straight to your inbox.<\/strong><\/em> <\/p>\n<hr \/>\n<p> <strong><br \/> <img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-1758646\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2019\/02\/subhead_leading.png\" width=\"838\" \/><\/strong> <\/p>\n<p><img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2026\/08\/us-trips-july-2026-1.png\" title=\"\" \/><\/p>\n<section class=\"story-v2-content-element article-content__content-group article-content__content-group--story\">\n<div class=\"story-v2-content-element-inline\">\n<section class=\"story-v2-content-element article-content__content-group article-content__content-group--story\">\n<div class=\"story-v2-content-element-inline\">\n<section class=\"story-v2-content-element article-content__content-group article-content__content-group--story\">\n<div class=\"story-v2-content-element-inline\">\n<p>Trips into Canada were up 6.3 per cent in July, boosted by three FIFA World Cup matches held in Canadian host cities Vancouver and Toronto during the month.<\/p>\n<p>Statistics Canada said 863,600 overseas residents arrived in the country, many to support their home teams from Colombia, Switzerland, Portugal and Croatia.<\/p>\n<p>Total air arrivals from those countries were up 18.7 per cent or 6,700 in July compared with a year ago. \u2014 <em>Denise Paglinawan, Financial Post<\/em><\/p>\n<\/p><\/div>\n<\/section><\/div>\n<\/section><\/div>\n<\/section>\n<div>Read the full story here.<\/div>\n<section class=\"story-v2-content-element article-content__content-group article-content__content-group--story\">\n<div><\/div>\n<\/section>\n<section class=\"story-v2-content-element article-content__content-group article-content__content-group--story\">\n<div class=\"story-v2-content-element-inline\">\n<hr \/><\/div>\n<\/section>\n<section class=\"story-v2-content-element article-content__content-group article-content__content-group--story\">\n<div class=\"story-v2-content-element-inline\"><\/div>\n<\/section>\n<p><img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/07\/subhead-1.jpg\" title=\"\"><\/p>\n<ul>\n<li><strong>Today\u2019s Data<\/strong>: Canada building permits for June, U.S. inflation for July, mortgage applications, real average weekly earnings, federal budget balance<\/li>\n<li><strong>Earnings: <\/strong>HLS Therapeutics Inc., Milestone Pharamceuticals Inc., Hydro One Ltd., Air Canada, Avino Silver &amp; Gold Mines Ltd., Boyd Group Services Inc., Maple Leaf Foods Inc., Metro Inc., Apotex Health Corp., Realbotix Corp., Birchcliff Energy Ltd., Pinecliff Energy Ltd., Mattr Corp., Sherritt International Corp., Northland Power Inc., Pan American Silver Corp., AutoCanada Inc., CAE Inc., Bird Construction Inc., Pollard Banknote Ltd., Stantec Inc., G Mining Ventures Corp., CCL Industries Inc.<\/li>\n<\/ul>\n<p> <img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-3080180\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2022\/07\/subhead_marketsam.jpeg\" width=\"838\" \/> <\/p>\n<p><img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2026\/08\/chart-0812-ph.jpg\" title=\"\" \/><\/p>\n<figure class=\"embedded-image\"><\/figure>\n<hr \/>\n<p> <strong><img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-3080181\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2022\/07\/subhead_reads.jpeg\" width=\"838\" \/><\/strong> <\/p>\n<ul>\n<li>Ottawa offers to cover 50% of cost of shipping steel across Canada as tariffs weigh<\/li>\n<li>Mismatched tax rules on income splitting show the government is getting dressed in the dark<\/li>\n<li>RBC, BMO sell Moneris for $2 billion after more than 25 years<\/li>\n<\/ul>\n<p> <img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-2059284\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2020\/04\/subhead_personal_finance_2.png\" width=\"838\" \/> <\/p>\n<p> <span>Canada\u2019s consumers are in trouble. That\u2019s the assessment of economist David Rosenberg, president of Rosenberg Research &amp; Associates, after new data showed that the number of consumers filing for insolvency rose seven per cent in the second quarter from a year ago, while the number of people filing for bankruptcy in the first and second quarters topped 2009 levels. Keep reading here to find out what Rosenberg thinks the Bank of Canada should do with interest rates.<\/span> <\/p>\n<hr \/>\n<p> <span><\/span><img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/11\/FP-West-Energy-Insider-Logo.png\" title=\"\" \/> Interested in energy? The subscriber-only FP West: Energy Insider newsletter brings you exclusive reporting and in-depth analysis on one of the country\u2019s most important sectors. Sign up here. <\/p>\n<hr \/>\n<div class=\"x_elementToProof\">Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@postmedia.com<span><\/span><span> with your contact info and the gist of your problem and we\u2019ll find some experts to help you out while writing a Family Finance story about it (we\u2019ll keep your name out of it, of course).<\/span><\/div>\n<hr \/>\n<h2>McLister on mortgages<\/h2>\n<p> Want to learn more about mortgages? Mortgage strategist Robert McLister\u2019s Financial Post column  can help navigate the complex sector, from the latest trends to financing opportunities you won\u2019t want to miss. Plus check his mortgage rate page for Canada\u2019s lowest national mortgage rates, updated daily. <\/p>\n<hr \/>\n<h2>Financial Post on YouTube<\/h2>\n<p> Visit the Financial Post\u2019s YouTube channel for interviews with Canada\u2019s leading experts in business, economics, housing, the energy sector and more. <\/p>\n<hr \/>\n<p> <em>Today\u2019s Posthaste was written by Gigi Suhanic with additional reporting from Financial Post staff and Bloomberg.<\/em> <\/p>\n<p> Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com . <\/p>\n<hr \/>\n<p> <em><strong>Bookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add financialpost.com to your bookmarks and sign up for our newsletters here<\/em> <\/p>\n<p><\/img><br \/>\n<br \/>\n<br \/>Posthaste: Mark Carney&#039;s gas tax holiday ends soon. Should he extend it or axe the tax altogether?<\/a><br \/>\n<br \/>2026-08-12 12:04:49<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Prime Minister Mark Carney probably didn\u2019t think that after suspending the federal excise tax on gasoline, diesel and jet fuel about a month into the start of the United States-Iran&#8230;<\/p>\n","protected":false},"author":2,"featured_media":77011,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-77010","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/77010","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=77010"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/77010\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/77011"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=77010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=77010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=77010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}