High taxes preventing even greater fuel savings for Islanders: Compton
Belfast – High taxes on fuel are preventing Island consumers and businesses from realizing even greater savings from falling world oil prices, says Belfast-Murray River MLA and Opposition Finance Critic Darlene Compton.
“Government can’t control world oil prices but they do control how much tax they take from Islanders. It’s good that Islanders are finally starting to see some relief at the pumps with falling world oil prices but high taxes on fuel are keeping Islanders from seeing greater savings,” said Compton.
Currently there are three separate taxes levied on Island gasoline – a federal excise tax, a provincial excise tax and then the HST charged on top of those two taxes. These taxes keep the price of gasoline higher and prevent even further reductions in pump prices seen by consumers and businesses in central and western Canada.
Compton noted this week’s unscheduled adjustment had no price reduction for winter essentials like furnace oil that many Islanders depend on and hopes that will be addressed in future adjustments. Compton also suggested with further increases to the HST being considered by the MacLauchlan government that a review of fuel taxes be done so that fuel taxes don't punish consumers and restrict economic growth.