The Canadian Taxpayers Federation wants Premier Susan Holt to suspend the provincial gas tax in New Brunswick. This demand follows recent moves by Prince Edward Island and the federal government to extend their own fuel tax cuts into 2027.

Image source: Canadian Taxpayers Federation

Pressure Mounts for Pump Relief

Drivers in neighboring provinces are paying less to fill up their tanks. P.E.I. Premier Rob Lantz recently suspended his province’s fuel tax. This move saves Islanders 8.47 cents per litre on gasoline and 14.15 cents per litre on diesel until January 2027.

The federal government also suspended its 10 cent per litre gas tax and four cent per litre diesel tax earlier this year. They recently extended this relief until 2027. Other provinces are taking similar steps. Alberta is cutting its 13 cent per litre gas tax to zero this week. Newfoundland and Labrador passed legislation making its gas tax cut permanent.

The Cost for New Brunswick Drivers

New Brunswick drivers currently pay a 10.9 cent per litre provincial gas tax. This rate stands as the second highest in Atlantic Canada. Premier Holt has not yet moved to cut this tax.

Suspending the provincial gas tax keeps more money in your pocket. You save almost $7 in taxes on a standard 64 litre minivan fill up. Over a year of weekly trips to the gas station, those savings add up to more than $350.

Taxes still make up 24 per cent of the price at the pumps in New Brunswick. This figure comes from the 28th annual Gas Tax Honesty Report published by the Canadian Taxpayers Federation. New Brunswick drivers also face a tax on tax penalty of about three cents per litre. The province calculates sales taxes after adding all per litre taxes to the base price.

Advocates Speak Out

Devin Drover serves as the Atlantic Director for the Canadian Taxpayers Federation. He believes New Brunswickers deserve the same financial break seen in other regions.

“Island drivers woke up last week to cheaper fuel because their premier suspended the gas tax, but New Brunswickers are still stuck paying some of the highest gas taxes in Canada,” Drover said. “The feds cut their gas tax, P.E.I. suspended its gas tax and Alberta is slashing its gas tax to zero this week.”

Drover added that other governments have delivered meaningful relief at the pumps. “Holt controls New Brunswick’s gas tax and she needs to suspend it now,” he said.

Frequently Asked Questions

How much is the New Brunswick provincial gas tax?

The New Brunswick government charges a 10.9 cent per litre gas tax. This is the second highest rate in Atlantic Canada.

How much money do I save if the gas tax is suspended?

You save approximately $7 on a 64 litre fill up. This translates to over $350 in savings per year if you fill up your vehicle once a week.

What is the tax on tax penalty?

New Brunswick applies sales tax to the final price of gas after all per litre taxes are added. This practice costs drivers an extra three cents per litre.

Have other provinces suspended their gas taxes?

Yes. Prince Edward Island, Alberta, and Newfoundland and Labrador have all implemented gas tax cuts or suspensions to provide relief for drivers.