The Government of Newfoundland and Labrador is making a recent tax cut on gasoline and diesel permanent to help drivers in Bay Roberts, Newfoundland. This change means that a temporary discount that was supposed to end soon will now stay in place for the long term. The province is changing its laws to ensure that fuel taxes do not return to their previous, higher levels next month.
Before this announcement, the provincial fuel tax was set to increase on April 1, 2026. If the tax had returned to its old rates, the cost for gasoline would have jumped to 14.5 cents per litre and 16.5 cents for diesel. By keeping the current lower rates, residents will continue to save about 8.05 cents per litre at the pump when taxes are included.
Finance Minister Craig Pardy says the move is meant to give families and businesses certainty about their costs. Once the new rules are passed, the province will have the lowest gasoline tax in all of Canada and the second-lowest tax rate for diesel. This makes the local fuel market one of the most affordable in the country compared to other provinces.
The provincial government first lowered the fuel tax in June 2022 as a way to help people deal with high prices. While the government used to renew this discount every year, this new plan ensures the lower prices will not expire. The decision is part of a larger effort to keep living costs down for everyone across the province.
