Sask. gas prices drop as consumer carbon tax gets scrapped

WATCH: Saskatchewan drivers woke up to a pleasant surprise at the pumps on Tuesday, with gas prices dropping about 20 cents per litre.

Saskatchewan drivers woke up to a pleasant surprise at the pumps on Tuesday.

Fuel prices plummeted after the consumer carbon tax was scrapped at midnight.

“On my first day as prime minister, I ended the consumer carbon tax,” Mark Carney said at a campaign stop in Winnipeg.

“Today that change takes effect.”

The average gas price in Saskatchewan on Tuesday was $1.46 a litre — a drop of 8 cents, according to GasBuddy. The price-tracking site reported Kindersley had the cheapest fuel in the province at $1.25 a litre.

“It puts a smile on your face,” a truck driver told CTV News at a Saskatoon gas station. He estimates his fill is about $50 cheaper.

Gas prices in Saskatoon hovered around $1.36 a litre, compared to Monday’s price of $1.53 a litre.

Patrick De Haan, the head of petroleum analysis at GasBuddy, expects the savings to go beyond the pump.

“Trucking, logistics companies, farmers are going to save a significant amount on diesel expenses. That should help trickle-down and reduce inflation,” De Haan said.

But the upcoming federal election and summer season could put the low fuel prices in limbo, according to De Haan.

Food Economist Mike Van Massow said the lower gas prices won’t make much of a difference on grocery bills.

“Most Canadians are going to be worse off with the carbon tax disappearing because they’re not going to get the carbon tax dividend anymore,” Van Massow said.

“Most people — particularly low-income people — were getting more from the carbon tax than they were paying for the carbon tax. So even if food prices come down a very small amount, I would expect, especially low-income people, to be worse off.”

The final consumer carbon rebate will be paid on April 22 for those who filed their 2024 tax return before Wednesday.