Mike Standing phoned all his friends and told them to get their last tank of discounted fuel while he was filling up at the Petro-Canada gas bar on Madison Street. The posted price was 117.9 cents per litre.
But not for long.
“It’s going to hurt a lot,” he said, referring to the return of the 12.5-cent provincial fuel tax.
He said he’s seen prices creep higher across the city recently, before the yearlong tax holiday was to end at 12:01 a.m. Wednesday.
RUTH BONNEVILLE / FREE PRESS
Mike Standing fills up his gas tank at Petro Canada’s Madison Street gas station.
Although there is a permanent 1.5-cent cut to the tax, which was 14 cents per litre prior to Jan. 1, 2024, Standing figures it will be a barely noticeable “break,” when he pays for his fuel.
Motorists lined up to fill their tanks Tuesday before the tax kicked in and the price spiked.
Darren Barnesky said he should have taken a couple gas cans with him when he rolled up with his Ford F-150 on empty. He’s expecting it’ll cost at least $180 to fill up his truck in the new year.
“We don’t really have much of a choice (when paying the tax),” he said. “We’re going to have to bear down and look for cheaper prices wherever we can.”
At the nearby Mobil gas bar on Sargent Avenue, the posted price had already jumped to 135.9 cents for regular fuel.
Simrangit Singh, a delivery driver, pulled up to the pump midway through his route.
RUTH BONNEVILLE / FREE PRESS
Simranjit Singh pumps his gas at the Mobil station on Sargent and St. James. Singh says he hopes gas prices come down soon.
He said he puts a lot of kilometres on the odometer and has to buy gas daily. He said the price jump from the reinstated tax concerns him. He’s already working two jobs to make ends meet amid the high cost of living.
“It’s going to affect everybody… I hope the prices come down soon,” he said.
Uber driver Hartley Macklin drives at least 250 kilometres a day. He said the tax holiday made a significant difference to his bottom line.
“We all know that we have to pay for the tax at some point, either at the gasoline (pump) or somewhere else, he said while waiting in line at the 204 Fuels station on Sargent Avenue.
The provincial government gave up an estimated $340 million in lost tax revenue as a result of the tax suspension. The NDP posted that its deficit for the fiscal year ballooned by $513 million, with a $1.3 billion shortfall forecast by the end of March.
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Motorists line up for gas at 204 Gas on Sargent and King Edward Street on the day before the provincial gas tax is re-instated.
Paul Thomas, professor emeritus of political studies at the University of Manitoba, said he’s noticed the government’s pattern of “giving by not taking” by handing out tax breaks, including the province’s $1,500 Homeowner Affordability Tax Credit and the gas tax holiday.
“In political terms, tax expenditures do their best work in the dark, allowing politicians to claim credit for generosity and avoid blame for adding to the deficit and debt,” said Thomas.
The province has released some information on the tax cuts’ impact on inflation and its lost revenue, but Thomas hopes to see data released on its wider economic impact.
While he acknowledged that the tax cut helped people who drive gas-guzzlers, Thomas said not everyone benefited equally, particularly people who don’t drive often or can’t afford a car.
The NDP said the government is proud to deliver affordability measures to Manitobans, a spokesperson for Finance Minister Adrien Sala said.
“You can count on our government to deliver relief to working families in the new year,” the spokesperson said in an email statement.
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