The Canadian Taxpayers Federation wants the provincial and federal governments to cut your fuel taxes. The organization released its 28th annual Gas Tax Honesty Report and called on Premier Susan Holt to reduce the provincial fuel tax. They also want the federal government to cancel a planned gas tax hike next month.

“New Brunswickers are struggling every time they fill up and the provincial and federal governments both need to cut fuel taxes now,” said Devin Drover, CTF Atlantic Director and General Counsel.

Image Source: Canadian Taxpayers Federation

What You Pay at the Pump

When you fill up your vehicle in New Brunswick, taxes make up 24 per cent of the price. You pay about 40 cents in federal and provincial taxes per litre of gasoline. Diesel drivers pay 47 cents per litre in taxes.

The report highlights a tax on tax. The government charges sales taxes after adding all the per litre taxes to the base price. This practice costs New Brunswick drivers an extra three cents per litre. An average 64 litre fill up in the province includes about $26 in taxes.

Looming Federal Tax Hike

The federal government suspended the federal fuel tax in April. This move saved drivers 10 cents per litre on gasoline and four cents per litre on diesel. Prime Minister Carney plans to bring this tax back on September 8.

Atlantic Canadians do not support this increase. Recent Leger polling shows 64 per cent of Atlantic Canadians oppose the federal government hiking fuel taxes in September. When looking only at decided voters, 72 per cent oppose the increase.

“Holt needs to cut New Brunswick’s fuel tax and stop charging sales tax on top of gas taxes,” said Drover. “Carney needs to stop his plans to hike the federal fuel tax back up.”

You can read the full Gas Tax Honesty Report on the Canadian Taxpayers Federation website.

Frequently Asked Questions

How much tax do I pay on a litre of gas in New Brunswick?

You pay about 40 cents in federal and provincial taxes per litre of gasoline. This includes a provincial fuel tax, a carbon tax, and sales taxes.

What is the tax on tax?

The government calculates sales tax based on the total price of fuel after they add the per litre taxes. This adds about three cents per litre to your bill.

When will the federal gas tax increase?

The federal government plans to reinstate the federal fuel tax on September 8. This will increase the price of gasoline by 10 cents per litre.