NDP calls on Moe government to suspend provincial gas tax as fuel prices climb

YORKTON, Sask. — Saskatchewan’s Opposition NDP is calling on Premier Scott Moe’s government to suspend the province’s 15-cent-per-litre fuel tax, arguing families are struggling with rising costs while other provinces move to provide relief at the pumps.

Jobs and Economy critic Aleana Young made the call in Yorkton Oct. 1, where gasoline prices reached about $1.79 per litre this week.

“People are already dealing with higher grocery bills, higher rents and higher costs for just about everything,” Young said. “What they don’t need is another lecture from Scott Moe about how affordable Saskatchewan is. They need their government to actually do something to make life more affordable.”

Young said suspending the provincial fuel tax would provide immediate relief for households, farmers and small businesses facing higher transportation costs.

“People are paying enough. It’s time their government gave them a break,” she said.

The NDP noted Prince Edward Island suspended its fuel tax last weekend, while Alberta moved to suspend its fuel tax as well. Young argued Saskatchewan should follow suit, particularly as the province benefits from higher-than-expected resource revenues.

The Opposition said Saskatchewan is projected to collect hundreds of millions of dollars more in oil revenue than forecast because of elevated energy prices.

Young said the issue is not whether the province can afford to provide relief, but whether the government is willing to do so.

“This is about whether Scott Moe will choose to provide that relief to families, farms and small businesses,” she said.

The NDP has been pushing for a fuel tax suspension since 2022, Young said, adding that rising fuel costs continue to affect residents in a province where many rely on personal vehicles.

She estimated the provincial fuel tax adds about $11 to the cost of filling a family vehicle and about $15 to filling a pickup truck.

“With producers hauling grain during harvest and businesses depending on goods being moved by truck, everything costing more ends up affecting Saskatchewan families,” Young said.

The province rejected the proposal, saying fuel tax revenue is dedicated to maintaining and improving Saskatchewan’s transportation network.

In a statement, the government said eliminating or pausing the tax would affect infrastructure projects already planned or underway.

“One hundred per cent of Saskatchewan’s fuel tax revenue is used to maintain and improve highways and transportation infrastructure,” the statement said.

The government said more than $44 million in fuel tax revenue is currently supporting highway improvement and maintenance projects in the broader Yorkton region, including work on Highways 10 and 16 and maintenance around Yorkton, Melville and Esterhazy.

The province also pointed to ongoing financial pressures despite stronger-than-expected resource revenues. While non-renewable resource revenue is forecast to be $320 million above budget, government expenses are expected to be $337 million higher than forecast because of health-care costs, inflation, compensation pressures, flood recovery efforts and increased crop insurance claims.

The government maintained Saskatchewan remains Canada’s most affordable province when utilities, taxes and housing costs are considered together.

The NDP, however, argues residents need immediate relief from rising fuel prices and says the government should use the additional revenue generated by higher oil prices to offset the cost of suspending the tax.

“This is a simple measure that Scott Moe could take tomorrow,” Young said. “People should be able to afford to drive on Saskatchewan’s highways.”

Andrea Moss, Local Journalism Initiative Reporter, SaskToday.ca.