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Published March 18, 2025

20-cent drop expected in gas prices April 1, says gas price watcher Dan McTeague

Price of gas falls; may fall some more

Prime Minister Mark Carney's decision to end the consumer carbon price could be a bonus when filling up your vehicle starting April 1.

Dan McTeague, president of Canadians for Affordable Energy, says the price at the pump in Ontario could drop 19.9 cents per litre.

April 1 was when the consumer carbon price was scheduled to rise again. Instead, it will be eliminated for consumer purchases including gasoline, propane and natural gas.

The price for big industrial emitters will remain in place.

"It's a very unpopular tax," McTeague said. "It has contributed and damaged the economy, certainly as affordability is concerned."

He is skeptical that the Liberal government is serious about cutting Canadians a break.

"The decision is really to suspend the tax for a period of time, likely during the election, which could be called any day now, at which point it is likely to morph back into another carbon tax, an industrial carbon tax that will basically negate any savings people might be expecting beyond the 30 days or 35-day period of the election."

McTeague says as a former 18-year Liberal member of Parliament, he has seen this play before.

"This is a bit of bait and switch at the end of the day."

The industrial carbon price is estimated to increase the price of gasoline by 17 cents per litre when fully implemented in 2030, while the consumer carbon price, which was supposed to climb in a few weeks, was expected to jack up the price of gasoline by about 37 cents per litre in the same time frame.

"That's precisely the vehicle I believe Mr. Carney's Liberals will use to reapply the tax, not in a consumer way, but when it's buried in the cost at the refinery level."

Pierre Poilievre confirmed on Monday that a Conservative government would repeal the entire carbon price law for consumers and big industry, if elected.

The Conservative leader said he will get rid of the industrial carbon price, and expand eligibility for clean technology tax credits in an effort to reduce emissions.

McTeague calls Carney's carbon price announcement "fairly shady."

"They haven't got rid of the framework legislation. They are simply going to shift it from a consumer tax to an industrial tax. At the end of the day, consumers and users of fuel, users of heating products like propane and natural gas will be left holding the bag."

with files from The Canadian Press

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