Tax cuts not the only way to help Canadians as gas prices rise: economists

By Canadian Press on April 8, 2026.

OTTAWA — The federal Conservatives are calling on Ottawa to return some of the revenue from higher gasolines prices to give Canadians a break at the pumps but some economists say cutting gas taxes isn’t the only way to deliver relief.

Conservative Leader Pierre Poilievre wrote a letter to Prime Minister Mark Carney on Tuesday calling for the Liberals to suspend various federal taxes and levies on gasoline and diesel for a full year.

The Conservatives estimate that would save an average family of four $1,200 between now and the end of the year at a cost of roughly $5 billion to the federal government but Poilievre argued Ottawa is getting a boost in tax revenues from higher gas prices and should return the “windfall” to Canadians.

Desjardins deputy chief economist Randall Bartlett said the lift from higher oil prices isn’t uniform across the country but rising gas prices do typically net out to a boost in federal revenues.

He says cutting federal taxes on gasoline would deliver relief to a wide swath of Canadians, though he also suggested that delivering targeted relief through programs like the existing GST rebate could help low-income Canadians struggling the most with rising costs.

Carney said Tuesday the Liberals are watching the rise in oil prices tied to the conflict in the Middle East and looking for ways to “cushion the blow” for Canadians.

This report by The Canadian Press was first published April 8, 2026.

Craig Lord, The Canadian Press

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