High taxes and low dollar are a big reason for high gas prices

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That ache on the pump you feel is inflicting squeals of enjoyment in Ottawa as taxes from report excessive gasoline costs fill the federal coffers.

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Inflation, an elevated carbon tax and further GST income could also be taking their toll in your checking account, however they’re guaranteeing Justin Trudeau’s Liberal authorities can sustain their excessive spending methods.

The value of gasoline hit report highs throughout Canada over the weekend and would possibly go increased nonetheless later within the week.

The Trudeau authorities has been dismissive of the concept that the spike within the value of gasoline is something however the results of Russia’s invasion of Ukraine. Whereas the affect of a struggle and the following sanctions on a significant participant within the oil market helps drive up the price of gasoline, we’re additionally doing it to ourselves.

Proof of this may be seen in evaluating gasoline costs on either side of the border.

Whereas motorists in Buffalo, N.Y., are at present paying the equal of about $1.51 Canadian per litre, simply throughout the border in Niagara Falls, the value sits at $2.09 per litre. In Vancouver, costs have dropped to $2.25 per litre after topping $2.30 over the weekend, however in Bellingham, Wash., the value works out to $1.68 per litre Canadian.

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Calgary and Edmonton have a number of the greatest gasoline costs in Canada at just below $1.75 per litre, however head south to Montana, and also you’ll pay the equal of $1.55 a litre in Nice Falls.

The principle distinction is tax and our low greenback.

Mountain climbing the carbon tax in the midst of an power and affordability disaster was insanity. Trudeau, although, is extra involved about being seen to do the suitable factor on local weather than the affect his tax has on household budgets.

When gasoline spiked throughout the 2008 monetary meltdown, our greenback was on par with American buck; now, we’re fortunate to purchase it for 70 cents on the greenback. Fuel value analyst and former Liberal MP Dan McTeague mentioned the Canadian greenback now not rises when the value of oil goes up as a result of we’ve ceased to be a spot oil and gasoline firms wish to make investments, and that’s hurting us.

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“The devaluation of the loonie quantities to a hidden tax or lack of buying energy equal to 30 cents a litre,” McTeague mentioned Monday.

McTeague, president of Canadians for Inexpensive Vitality, mentioned that the cancellation of pipeline initiatives from Vitality East to Northern Gateway — and even the delays on Trans Mountain — are costing us. He mentioned if these initiatives have been on-line already, as they need to have been, Canada could be producing an additional 3 million barrels of oil a day.

“This could simply displace Russian blackmail barrels over Europe and drive oil down $40 a barrel … saving us one other 40 cents a litre,” McTeague mentioned.

Add within the additional carbon tax, it was elevated on April 1, plus the additional GST income, and you’ll see why our costs are so excessive. GST revenues alone are filling authorities coffers full.

The GST is the final merchandise charged on a litre of gas and whereas for years we’ve complained concerning the tax on a tax — that means charging GST on the federal excise tax — it’s now charged on the excise tax and the carbon tax.

A yr in the past, the typical value of gasoline in Toronto was just below $1.30 a litre. It now sits at $2.09 a litre, and the federal authorities takes an 5% lower on each penny of that improve.

The struggle in Ukraine is little doubt affecting the value of gasoline, however a lot of the ache we’re feeling is because of the dangerous selections we’ve been making, together with re-electing the Trudeau Liberals.