The Government of Newfoundland and Labrador introduced new rules on March 10, 2026, to permanently lower the provincial tax on gasoline and diesel. This decision ensures that residents and businesses in Mount Pearl, Newfoundland, will continue to see lower costs at the pump rather than facing a scheduled tax increase this spring.
The change prevents the provincial gas tax from returning to 14.5 cents per litre and the diesel tax from returning to 16.5 cents per litre on April 1, 2026. By making the current lower rates permanent, the province says drivers will continue to save 8.05 cents per litre at the station, which includes the harmonized sales tax.
Finance Minister Craig Pardy introduced the plan to fulfill a commitment made by the government under Premier Tony Wakeham. The move is intended to help families and businesses manage the cost of living by providing predictable fuel prices.
With these changes, Newfoundland and Labrador will have the lowest provincial tax rate on gasoline in Canada. The province will also have the second-lowest tax rate for diesel compared to all other provinces.
