Big drop in gas prices overnight on P.E.I. as carbon tax is removed

Prince Edward Islanders woke up Tuesday morning to a significant drop in gas prices after the federal carbon tax was removed from the cost of fuel.

The minimum price at the pump for gasoline fell by about 20 cents per litre, bringing it down to $1.49.

Diesel prices also saw a sharp decrease, dropping by approximately 24 cents to $1.66 per litre.

The change comes after Mark Carney cancelled the tax on his first day as prime minister last month, signing a directive for the fuel charge to be removed on April 1.

While the order eliminates the consumer carbon tax, eligible Canadians who've received quarterly carbon rebates in the past can expect one more on April 22 — but only if they file their taxes by April 2. Those who miss the deadline will receive their rebate once their taxes are assessed.

There's no carbon tax charged on home heating oil as Ottawa announced a controversial exemption for that a year and a half ago.

Initiative meant to promote sustainability

Former prime minister Justin Trudeau first implemented the carbon pricing scheme in 2019.

It was designed as a financial incentive for people and businesses to change their behaviour to burn less fossil fuel and transition to greener forms of energy, helping Canada lower its emissions.

But as Canadians experienced high inflation in the years following, Conservative Leader Pierre Poilievre's pledge to "axe the tax" gained traction among voters.

To help offset costs, rebates were offered to residents in provinces where the policy applied.