carney said Tuesday that the federal government is looking at ways to support Canadians as oil prices rise amid the ongoing war in the Middle East. The comment came as gas prices across Canada climbed above $1. 80 per litre on Tuesday, with the pressure felt at pumps from coast to coast. The Prime Minister said Ottawa wants to help “cushion the blow” as the conflict continues to push energy markets higher.
Gas Prices Climb as Ottawa Weighs Its Response
The latest price spike follows the U. S. and Israel attack on Iran on Feb. 28, which sent oil prices sharply higher. The Canadian Automobile Association gas price tracker showed national prices averaging more than $1. 80 per litre on Tuesday, up from about $1. 32 a year ago and $1. 51 on March 7. carney said the government is watching how long the higher prices persist and what can be done to ease the strain on Canadians.
“There’s a global market and those countries that have lots of oil and gas see their prices go up alongside with those who don’t have that oil and gas, it’s the same shifts up in prices in the United States as well, ” carney said Tuesday. He added that the key question for the government is how long the increase will last and what support can be offered to help “cushion the blow for Canadians. ”
Conservatives Push for Fuel Tax Relief
Conservatives have urged the Liberal government to give drivers relief by suspending federal taxes on gas and diesel for the rest of the year. Conservative Leader Pierre Poilievre said last week that lifting the fuel excise tax, clean fuel standard and GST surcharges from gas and diesel would save consumers about 25 cents a litre. He said the move would mean savings of “about $20 a fill-up, and $1, 200 for the average family of four between now and the end of the year. ”
In a letter to carney on Tuesday, Poilievre said rising oil prices have created a “massive windfall” for the government. He repeated his call to suspend the federal fuel excise tax, remove the GST on gas and diesel, and permanently eliminate the clean fuel standard tax and industrial carbon tax.
Why the Pressure Is Rising
The conflict has disrupted crude flows through the Strait of Hormuz and shut down energy production in parts of the Middle East. About one-fifth of the world’s oil supply passes through that strait, which connects the Persian Gulf to the Gulf of Oman and then the Arabian Sea. That makes the situation a direct concern for consumers now seeing higher prices at the pump, even as the government studies its next move.
For now, carney has not announced a specific measure, but the message from Ottawa is clear: officials are looking at how to soften the impact if elevated fuel costs continue. With gas prices already well above levels seen earlier this year, the political and economic pressure around carney and his response is likely to stay high in the days ahead.
