Some Canadians are about to get a break at the pump, but Quebecers might be out of luck.
Drivers in la belle province hoping for cheaper gas this spring might be disappointed. A new economic study by Desjardins confirms that while gas prices are set to drop across most of Canada following the elimination of the federal carbon tax, Quebecers won’t see the same relief.
With Mark Carney recently stepping in as Canada’s new Prime Minister, one of his first major policy moves was to eliminate the federal price on pollution (commonly known as the carbon tax). According to a March 18 report by Desjardins Economic Studies, this decision is expected to reduce Canada’s Consumer Price Index (CPI) inflation by 0.7 percentage points in April 2025, largely due to lower gas and energy costs.
Here’s why Quebec isn’t included in that equation.
Quebec already has its own cap-and-trade system, separate from the federal carbon tax. Since the province operates under this system, the federal government’s decision to scrap its carbon pricing policy won’t change anything for Quebec drivers.
“The price on pollution only applied to eight provinces (Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan) and two territories (Yukon and Nunavut). As such, eliminating the federal price on pollution on a litre of gasoline won’t translate into a one-for-one reduction in the average price of a litre of gasoline in Canada,” explains the Desjardins report.
Meanwhile, drivers in other parts of Canada can expect significant relief at the pump. The report notes that gasoline accounts for a major portion of the CPI’s energy component, meaning lower fuel prices will directly reduce inflation. But again, that won’t apply in Quebec.
This isn’t just a short-term effect. Before its removal, the federal carbon tax was set to increase annually, meaning fuel prices would have continued rising in provinces where it applied. Now that it’s gone, gas prices are expected to remain lower than previously projected, at least in the short run.
That said, Quebecers shouldn’t assume their gas prices will remain stable either. Other factors, including global oil prices and potential adjustments to Quebec’s cap-and-trade system, could still impact the cost of fuel in the province.
As of March 2025, here are the average regular gasoline prices across Canadian provinces, expressed in cents per litre, according toGasBuddy.
- Ontario: 146.9¢
- Manitoba: 147.7¢
- Alberta: 148.0¢
- Quebec: 150.6¢
- Saskatchewan: 152.0¢
- New Brunswick: 155.0¢
- Nova Scotia: 155.9¢
- Prince Edward Island: 162.1¢
- Newfoundland and Labrador: 166.1¢
- British Columbia: 171.8¢
- Northwest Territories: 174.9¢
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