Conservatives call for federal relief at the pumps as Iran war pushes prices up

OTTAWA — The Conservatives are calling on the Liberals to give Canadians some relief at the pumps by suspending federal taxes on gas and diesel for the rest of the year.

Conservative Leader Pierre Poilievre said Thursday that lifting the fuel excise tax, clean fuel standard and GST surcharges from gas and diesel would save consumers about 25 cents a litre.

That cut, he said, would amount to savings of “about $20 a fill-up, and $1,200 for the average family of four between now and the end of the year.”

Poilievre said prices have risen by about 35 per cent in recent months, and noted that gas is selling for more than $2 per litre in Quebec.

“Now, to be clear and to be fair, the recent increase in gas prices is the result of the war in Iran, but the long-term high costs in Canada are the result of Liberal taxes,” he said.

Oil prices have surged since the U.S. and Israel attacked Iran on Feb. 28. The conflict has cut off flows of crude through the critical Strait of Hormuz and shut down energy production across parts of the Middle East.

President Donald Trump said Wednesday evening that the U.S. will continue its strikes on Iran for the next two or three weeks. That statement caused U.S. crude oil prices to jump on Thursday to more than US$110 a barrel.

Poilievre said Canadians are paying 20 per cent more for gasoline than American consumers, due to a combination of taxes and a weaker Canadian dollar.

He said affordable energy is the “lifeblood” of a strong economy, and pointed out that countries such as Australia, Spain and Ireland already have taken action to lower gas prices by reducing fuel taxes.

“The lower the better,” he said. “Every penny that we can get reduced in taxes is a penny in the pocket of the people that earned it.

“It’s time to have the government pinch its pennies, so Canadians don’t have to.”

Prime Minister Mark Carney was asked Tuesday if he was considering some kind of reduction to gas taxes. He said the government is “following it closely” and watching to see whether oil prices remain high.

He also said the spring fiscal update “would be the right time to fully answer that question.” A date for that update has not been announced.

John Fragos, a spokesperson for the Office of the Minister of Finance and National Revenue, said in an email the government is “closely monitoring” the surge in oil prices brought on by disruptions in the Strait of Hormuz and its implications for the cost of living.

“We are continually assessing measures and policies to support Canadians in this volatile period, while looking at ways to immediately alleviate urgent downstream price shocks and make life more affordable,” Fragos said.

NDP MP Gord Johns said he’s been hosting town halls in his riding and is hearing from people that they want relief from high prices. He also said constituents are telling him they want the oil and gas companies to cover the cost of that relief.

“All of those big oil companies were already recording record profits before the war and are sure to pocket even more,” Johns said in an email.

Poilievre estimated his proposal would cost the government some $5.25 billion in tax revenue.

To cover that, he said, the government should terminate a handful of programs and call off some planned projects, including the proposed high-speed rail line between Toronto and Quebec City.

“End the $90-billion Alto train disaster, cut back on consultants, bureaucracy, handouts to fake refugees, foreign aid and bureaucracy. Get rid of the multi-billion dollar gun grab that targets law abiding hunters, farmers and sport shooters,” Poilievre said.

Alto, the Crown corporation overseeing the project, estimates the full cost of the 1,000-kilometre high-speed rail line at between $60 and $90 billion, with a completion date in 2037. Construction of the first phase of the line, linking Montreal and Ottawa, is set to begin in 2029 or 2030.

This report by The Canadian Press was first published April 2, 2026.

Sarah Ritchie and David Baxter, The Canadian Press