Manitoba's temporary gas tax holiday kicks in - Action News
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Manitoba

Manitoba's temporary gas tax holiday kicks in

As Manitoba pauses its gas tax to provide savings at the pumps, Alberta is bringing its back after a two-year pause.

Alberta restores 9/litre fuel tax after 2-year pause

A driver fills car at gas station.
Starting Monday, Manitoba motorists won't have to pay the provincial 14-cent-a-litre tax on gasoline and diesel fuel used by motor vehicles for the next six months. (Kevin Yarr/CBC)

As Manitoba pauses its gas tax to provide savings at the pumps, Alberta is bringing its back after a two-year pause.

Starting Monday, Manitoba motorists won't have to pay the provincial 14-cent-a-litre tax on gasoline anddiesel fuelusedbymotor vehicles for the next six months.

The average Manitoba family will save an estimated $250 during that time, government figures suggest.

Vic Janzen says he will enjoy the savings from thetax break, but doesn't think it's a good long-term solution.

"As a person who likes a green economy, it's actually not that good, because it encourages people to use gasoline rather than other sources of energy," he told CBC News outside agas station in Winnipeg's North Kildonan neighbourhood neighbourhood on Monday.

The legislation, introduced as Bill 3 in late November and passed days later, was promised by the NDP during the recent election campaign as a way to help people with rising costs.

The fuel tax brings in roughly $340 million a year for the province.

Janzen says the money used to cover the temporary tax break will have to come from somewhere.

"That'll have to be made up at some point, somewhere else But the government did [come] through on its promise, so good on them."

Alberta brings back tax

Elsewhere, the Alberta government is reintroducing its gas tax after pausing it nearly two years ago.

Starting today, motorists can expect to pay a tax of nine cents per litre at the pumps.

Alberta Finance Minister Nate Horner has said the tax rate is based on the average price of oil.

He says should the price of West Texas Intermediate average $80 US abarrel, Albertans can expect to save some or all of the fuel tax.

In Ontario, the province is to extend a break on the gas tax to June, so motorists are to continue to pay nine cents a litre.

Opposition parties in British Columbia and Saskatchewan have asked for a break on gas taxes, but those provincial governments have refused to do so.

With files from CBC News and Zubina Ahmed