Gas prices in Manitoba are expected to fall

Daniel Halmarson reports on why falling gas prices from the newly axed carbon tax aren’t expected to stick around.

Gas prices are expected to fall on April 1 as a result of the Consumer Carbon Tax ending; however, the relief could be short-lived.

“We will be eliminating the Canada fuel charge, the consumer fuel charge immediately,” said Prime Minister Mark Carney on Friday.

That pledge is music to some Manitobans ears, including owner of Simba Cleaning Baraka Mulimbwa.

“It’s really a big relief for small businesses and families that are struggling to make ends meet,” he said. “That’s a really good news.”

Mulimbwa said he pays about $150 a week to fuel up his work trucks, so any drop in prices at the pump is a blessing.

“We have to go from side to side on projects, so if gases go high, it limits us from where we can go and what we can do,” he said.

The federal Consumer Carbon Tax was a push from the Trudeau government to get Canadians to use less fossil fuels.

However, Carney says he’s scrapping the tax by April 1, which means Manitobans will be paying about 18.5 cents a less a litre.

“Anybody who thinks this is a gift, it’s not. It’s a short-term gain for long-term pain,” said Dan McTeague, president of Canadians for Affordable Energy.

McTeague said that’s because the Industrial Carbon Tax --- a levy on big polluters -- is still kicking around.

“It means that refiners and manufacturers, business will have to absorb the costs and probably pass it on to consumers,” he explained.

McTeague said motorists could see prices climb back up around April 30, but that hike hinges on a looming federal election.

“Well, it really does depend on who forms a government,” McTeague said.

“The reality is that the two policies are extraordinarily different and will have different consequences for consumers who are concerned.”

Mulimbwa said he just hopes there’s some relief at the pumps for his business and family.

“Any relief is better, but we wish it would be long-term than just a short-term leave, the lower in gas prices,” he said.

Another jump at the pump is on its way because producers shift from winter to summer-blend fuels which cost more to make.

Prime Minister Carney said eligible Canadians will see one more carbon tax rebate cheque in mid-to-late April. For the average family of four here in Winnipeg that’s about $300 in the bank.