Gas tax returns to Manitoba in new year

The gas tax is coming back to Manitoba, albeit at a lower rate than before the gas-tax holiday.

The tax is returning at a rate of 12.5 cents per litre, down slightly from the 14 cents before 2024.

The Manitoba government introduced a 10 per cent cut to the provincial fuel tax on Monday.

“Our government keeps our word. We said we’d cut the fuel tax and we did,” said Premier Wab Kinew in a press release.

“We said it would last 12 months and it did. Now we’re going further by bringing in a permanent cut to the fuel tax to make it one of the lowest in Canada.”

CityNews spoke to Manitobans who said they were not happy to hear gas prices would be rising in the new year.

“At a time right now when a lot of people are struggling, I don’t think it’s an appropriate time,” one person said. “Especially when groceries and everything else is already up there.”

“Everybody’s struggling right now, and to have this tax, just to get around, even businesses, it’s gonna be really tough for everyone. That’s what I believe,” said another.

“It’s ridiculous. It sinks,” added a third.

GasBuddy.com, which tracks gas prices across North America, still has Manitoba as having the cheapest gas in the country by far, with prices per litre hovering around the $1.30 mark, compared to prices as high at $1.69 elsewhere.

The premier noted the province has managed to keep its gas prices the lowest across all of Canada throughout 2024 and the break has helped slow inflation in Manitoba.

The new fuel tax rate will be applied on the first day of the new year.

“I’m of two minds, one, they have to,” one Winnipegger told CityNews. “The government needs the revenue, right? On the other hand, those of us who have been lucky enough to take advantage of it, are going to be shocked. But I think we’ll get over it.”

“We need revenue to run all our social programs, so yeah, I guess we’re going to have to bite down a little harder, and pay the freight,” said another.