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The Manitoba government will reinstate the provincial gas tax on Jan. 1, 2025, at a rate of 12.5 cents per litre. This marks a 1.5 cent reduction from the previous rate of 14 cents per litre that was in place before a one-year tax holiday in 2024.
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Provincial budget estimates show that the tax holiday, which temporarily eliminated the gas tax, resulted in a revenue loss of approximately $340 million. However, provided fuel sales remain consistent, the reinstated tax rate is projected to generate about $304 million in revenue in 2025.
The tax’s reintroduction comes as the government works to address a projected deficit of $1.309 billion for the 2024-25 fiscal year. The gas tax revenue will apply during the last three months of the fiscal year, ending March 31, 2025.
The gas tax rate of 14 cents per litre was implemented in 2012 and remained unchanged under successive provincial governments. The new rate of 12.5 cents per litre represents a reduction from that level.
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