Only On The Walters Post!

Canadians will see a drop in gas prices soon, as Prime Minister Mark Carney has signed an order-in-council to eliminate the federal consumer carbon tax starting April 1, 2025. This means the extra charge on gasoline and natural gas will be gone, reducing costs by 17.6 cents per liter of gas and just over 15 cents per cubic meter of natural gas.

The move follows years of debate over carbon pricing and its impact on affordability. Saskatchewan Premier Scott Moe and Alberta Premier Danielle Smith have both been vocal opponents of the tax, arguing it increased the cost of living and hurt businesses. While they welcome its removal, there’s still concern about what comes next.

Carney’s government has made it clear that while the consumer levy is going away, industrial carbon pricing will increase. That means big polluters—especially in oil and gas—will face higher costs, though the exact details remain unclear. Smith has already called for a federal election, saying Albertan’s need to know “just how badly he’s going to punish the oil and gas sector.”

So, what does this really mean for everyday Canadians? Lower fuel costs, at least for now. The carbon tax portion on gas and home heating will be gone, but other taxes remain, including:

• The federal excise tax (10 cents per litre on gasoline)
• Provincial fuel taxes (which vary across the country)
• GST/HST, which is applied to fuel purchases

This change applies across the country, including Ontario. So yes, Ontarian’s will see the same price drop at the pump and on their natural gas bills. But keep in mind, the government is shifting the focus—while consumers get a break, big industries will be hit with higher levies to keep up with Canada’s climate commitments.

And let’s not forget: just because the tax is removed doesn’t mean prices won’t shift for other reasons as fuel companies and provinces could adjust pricing in different ways. And if history tells us anything, savings at the pump don’t always last.

With the April 1st timeline, some Canadians might be wondering if this is some kind of April Fools’ joke—but no, this one’s real, I think ha ha. The only question now is if we’ll see new costs creeping in under a different name.

Until the next time, keep your minds open and your stories alive. GW