CHARLOTTETOWN, PE: The Canadian Taxpayers Federation is urging for immediate gas tax relief after the release of the 26th annual Gas Tax Honesty Report which uncovers substantial hidden taxes burdening Islanders at the pump.

“A staggering 34 per cent of the price Islanders pay at the pump is taxation,” said Devin Drover, CTF Atlantic Director. “Both Prime Minister Justin Trudeau and Premier Dennis King need to scrap their taxes on fuel that are making life more expensive for everyone.”

Drivers in Prince Edward Island are paying about 60 cents in federal and provincial taxes per litre of gasoline when they fill up, according to the CTF’s Gas Tax Honesty Report. This means for a 64-litre fill up, gas taxes alone amount to $38.40.

The federal carbon tax costs 17.6 cents per litre of gasoline along with the federal excise tax at 10 cents per litre. The provincial government charges a provincial tax of 8.5 cents per litre.

The remainder comes from Harmonized Sales Tax, which is charged on top of the price after other taxes have already been added.

Meanwhile, other provinces are cutting gas taxes. Newfoundland and Labrador cut its provincial gas tax by eight cents per litre in June 2022 and has since extended the cut until March 31, 2025, saving an average Newfoundlander or Labradorian more than $5 on each 64-litre fill-up.

Similar cuts have followed in Ontario and Manitoba.

“King needs to follow the lead set by Premier Andrew Furey in Newfoundland and Labrador,” Drover said. “Other provinces have been able to cut gas taxes to make life more affordable and the government of Prince Edward Island needs to do the same.”