Legault will not suspend the gas tax

Asked regarding the subject on Tuesday followingnoon while he was passing through the riding of Marie-Victorin, where a by-election will be held on April 11Prime Minister François Legault ruled out this possibility, because such a measure would help more those who consume morehe explained.

« We do not favor freezing or removing taxes, which would benefit those who consume the most. »

— A quote from François Legault, Premier of Quebec

The Quebec government nevertheless intends to adopt measures to counter inflation in its March 22 budget, he said. He mentioned a fixed amount which might be distributed to everybody and that [bénéficierait] more to the people who need it most, who have less income.

To counter inflation, the government of François Legault might grant a “fixed amount” to all Quebecers in its March 22 budget.

Photo: Radio-Canada / Ivanoh Demers

Already, Finance Minister Eric Girard said last month that his next budget would include measures to offset inflationsomewhat like those adopted in its latest economic update.

Last November’s mini-budget set aside $946 million by March, among other things to provide a check for $275 for people living alone and $400 for couples with low or average incomes.

Alberta back in force

Earlier in the day, the leader of the Conservative Party of Quebec, Éric Duhaime, had called on the Legault government to imitate that of Alberta and suspending the provincial gasoline tax – a measure that would save Quebec motorists 19.5 cents per litre.

However, the situation of the two provinces is very different: such a suspension in Quebec would deprive the government of significant revenue, while Alberta benefits from a major increase in the royalties it collects for the oil extracted on its territory since the price of the barrel went up.

These royalties, which were 1% when the barrel was selling at $55, gradually increased to reach their expected peak of 9% since the barrel reached $120. In terms of dollars, Alberta’s revenues increase by $400 million to $500 million for every dollar a barrel rises in price, experts say.

However, the price of a barrel has increased by more than $65 since January 2021. The loss of revenue from the Alberta provincial gasoline tax will therefore be largely offset by the meteoric rise in royalties for a little more than a year.

Due to the uncertainty caused by the war in Ukraine, oil costs are flirting these days with record levels both on the stock markets and at the pump. In Quebec, a liter of gas currently costs around $2 per litre, unheard of.

Unlike François Legault, Éric Duhaime advocates the exploitation of Quebec’s gas and oil resources.

As such, he denounces the CAQ bill aimed at putting an end to the research and production of hydrocarbons, which is currently being considered by the National Assemblyand pleads for the revival of the natural gas export project LNG Quebec.

According to him, Prime Minister Legault made a mistake by giving up the exploitation of oil potential here, when he was once a supporter of it.

degrees to please Montreal environmentalists. It will have to appeal to motorists and people from the rest of Quebec, it will have to come back with both feet on the ground”,”text”:”It made a 180 degree turn to please Montreal environmentalists. It will have to appeal to motorists and people from the rest of Quebec, it will have to come back with both feet on the ground”}}”>He made a 180 degree turn to please Montreal environmentalists. It will have to please motorists and people from the rest of Quebec, it will have to come back with both feet on the groundhe said at a press conference on Tuesday in Sainte-Anne-de-la-Pérade.