N.L. officially cuts gas tax, dropping prices across province

A cut to Newfoundland and Labrador's provincial gastax has officially come into effect, temporarily lowering the price of gasoline and diesel across the province until 2023.

The province announced it would reducethe gas taxlast week as a temporary measure to help residents with the rising cost of living.

The tax was reduced by seven cents per litre from 14.5 cents to 7.5 cents for gas, and 16.5 to 9.5 cents for diesel. Thursday's prices reflectthe tax change, but are also impacted by changes to the average benchmarks prices used tocalculate the price of fuel, according to the Public Utilities Board, which is the province's fuel regulator.

As a result of thechanges, the price of gasoline dropped 5.1 cents per litre across much of the provinceThursday morning.

The change puts the price of fuel at $2.17per litre on the Avalon Peninsula and in the Corner Brook area, $2.19per litre in central Newfoundland, and ranging from $2.19 to $2.21 per litre on the island's northern peninsula.

Diesel also dropped Thursday, down 8.1 cents per litre in most parts of the province. Prices range from $2.17 per litre on the Avalon to $2.28 onChange Islands. Furnace oil and stove oil saw no change, while propane decreased by 0.8 cents per litre across the province.

The price drops areslightly higher in Labrador, as much of the region isn't impacted by a change in the pricing benchmark.

The price of gasoline dropped 8.1 cents per litre in the Labrador Straits, the south coast between Cartwright and Lodge Bay andthe north andsouth coasts. That means gas in the Straits now costs more than $2.35 per litre and $2.39 per litre on the south coast.

Diesel dropped by the same amount in the region.

Prices for diesel and stove oilin western Labrador and Churchill Falls also see differing costs as a result of tax and benchmark price changes, lowering 4.9 cents per litre and 4.92 cents per litre respectively.

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