Ottawa's gas-tax break benefits high-income families more, the PBO finds. The bill climbs to $5 billion
The Parliamentary Budget Officer found that suspending the federal fuel excise tax benefits higher-income households more in dollar terms, The Globe and Mail reported. The PBO assessment puts average savings at $59 per household for the lowest income fifth and $211 for the highest. As a share of income the savings are larger for low-income households: $17 per $10,000 against $6. Radio-Canada reported that the cost of the suspension has now reached $5 billion.
A broad tax break is easy to explain and hard to target. The PBO result gives critics a number to use against it, and the government a reason to keep it going while oil is above US$90.
You pay less per litre while it lasts; the saving is a few dollars a month. If you do not drive, you get nothing.
The break helps everyone who buys fuel, including truckers and farmers whose costs flow into groceries.
Most of the money goes to people who burn the most fuel, and the cost has grown to $5 billion.
Watch the end date. A government that renews a tax break while oil rises will find it hard to stop.
DailyDrop Canada edition No. 4 · Morning · THU., OCT. 8, 2026