B.C. NDP promises 10-cent fuel tax cut and price guard on gas margins
Small business groups welcomed the pledge, while economists questioned how much it would lower prices at the pump.
Premier David Eby announced in Surrey on Thursday that, if re-elected, the NDP government would temporarily lower the provincial motor fuel tax by 10 cents a litre and direct the B.C. Utilities Commission to implement a price guard on industry margins, which he said would cut prices by a further 20 cents a litre, the Vancouver Sun reported.
"With a 10-cent gas tax cut, plus the 20-cent margin reined in by the utilities commission, British Columbians will save about $20 on an average fill-up," Eby said. The NDP estimates the fuel tax cut could cost the province roughly $250 million.
Ryan Mitton, B.C. legislative affairs director for the Canadian Federation of Independent Business, said the tax cut would be welcome relief, adding that 57 per cent of small business owners in a recent survey said the fuel tax was a constraint on their business.
UBC economist Werner Antweiler said the plan would do little to bring down prices and would cost tax revenue amid a projected $13.8 billion deficit. "If the prices get capped here, they're just not going to deliver here," he said. SFU economist Andrey Pavlov said price caps could worsen shortages but that the tax reduction might work.
Conservative leader Lorne Doerkson said any savings must go to British Columbians, not oil companies, while Green leader Emily Lowan called for a windfall tax on excess industry profits.
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