Government to Cut Provincial Gas Tax to Zero for Four Months

Drivers in Newfoundland and Labrador will pay no provincial tax on gasoline and diesel for four months, beginning December 1.

Finance Minister Craig Pardy announced Monday that the provincial fuel tax will be reduced to zero cents per litre from December 1, 2026, to March 31, 2027.

The government says the measure is intended to provide relief from rising living costs and reduce fuel expenses for residents and businesses.

Legislative amendments are expected to be introduced in the House of Assembly this week to bring the tax changes into effect.

The government also plans to introduce a measure that would keep the provincial gasoline and diesel tax at zero for as long as fuel prices remain above a specified threshold.

The announcement does not specify the price threshold that would trigger the extended tax relief.

The reduction applies to the provincial fuel tax and does not eliminate federal taxes or other charges included in the price of fuel.