Canada on Tuesday became the latest country to take measures to help consumers facing rising prices at the pump due to the war in Iran and the disruption of global energy markets.
Prime Minister Mark Carney announced that he would temporarily suspend a federal gas tax until early September. The move is expected to slash the cost of a liter of gasoline by 10 Canadian cents and the price of a liter of diesel by 4 Canadian cents.
Mr. Carney said the move was “a responsible measure that will reduce operating costs for truckers and businesses in the food, agriculture, housing, construction, and delivery sectors” and will cost 2.4 billion Canadian dollars ($1.7 billion).
The price of gas in Canada has shot up by about 27 percent at the pump since the Iran war began, Bloomberg analysis shows, exacerbating already existing cost-of-living concerns for many Canadians.
The opposition Conservative Party had been pressing Mr. Carney to slash all taxes on gas until the end of the year, but he opted to maintain a separate 5 percent goods-and-services tax and keep the relief limited to approximately five months.
Canada is an important oil and gas exporter, and, while consumers have faced steeper costs, the Canadian energy industry has benefited from the higher prices.
Mr. Carney said that his government was investing in infrastructure to boost oil and gas production and shield Canadians from these types of shocks in the future.
“To make Canada more energy secure and less reliant on external factors, our government is advancing major projects to realize Canada’s full potential in clean and conventional energy,” he said.
Public opinion in Canada, where environmental protections are built into the regulatory system, has swung in favor of more investments in oil and gas. But such projects will take years to complete and are unlikely to help Canada in the short term.
Matina Stevis-Gridneff is the Canada bureau chief for The Times, leading coverage of the country.
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