The government of Manitoba has announced an extension to the gas tax holiday, initially implemented in January of this year and slated to last until the end of September.
On Wednesday, Premier Wab Kinew announced that the gas tax reprieve will now continue until December 31, 2024.
In a press release, the Manitoba government explained that the extension was a direct response to the economic challenges, particularly in the realms of high interest rates and grocery prices.
Kinew has stated that the extension is a necessary measure to support the province’s citizens, noting that the gas tax holiday has already contributed to a reduction in inflation within Manitoba.
“Since we cut the gas tax in January, inflation has gone down in Manitoba,” said Kinew.
“This is what governments are for. We know Manitobans are still struggling with the impact of interest rates and grocery prices so we’re going to continue to step up and save you 14 cents at the pump.”
As reported by True North, inflation in Manitoba and Saskatchewan rose at half the rate as the rest of Canada in May when compared to last year due to both provinces taking measures to cut gas taxes.
The tax holiday affects both gasoline and diesel, providing a 14-cent per liter saving at the pump, which has been particularly beneficial for drivers of pickup trucks—the most common vehicle type in Manitoba. These drivers are estimated to save approximately $14 with each full tank of fuel.
According to the Manitoba Bureau of Statistics, the gas tax holiday has led to a 0.4% reduction in the province’s inflation rate, suggesting a significant economic impact from the policy.
Manitoba’s average retail price for gasoline has been the lowest in Canada since the tax holiday began, which has also contributed to the province’s inflation rate falling within the Bank of Canada’s target range of 1% to 3%.
The continuation of the gas tax holiday is expected to further assist in maintaining this economic stability claimed the government press release.
