Province will ponder gas tax cut over next month: premier

Manitoba will spend the next month mulling a potential cut to the provincial gas tax, as fuel prices soar amid an ongoing conflict between the U.S. and Iran.

The decision could hinge on the outcome of a scheduled two-week ceasefire between the warring countries, which is expected to influence prices, Premier Wab Kinew said Thursday.

”Over the next month, we’re going to watch the price of oil, and if gas prices stay high for a long time, we may reduce the gas tax,” Kinew said in a statement.

“We should see within the next month if this ceasefire actually leads to prices going closer to normal.”

Kinew froze the 14-cents-per-litre provincial gas tax in 2024, to help Manitobans battle inflation, he said at the time. The tax returned in 2025, but was reduced to 12.5 cents per litre.

The decision cost the province about $340 million in revenue, but Kinew recently described it as the most important action taken by a Manitoba government.

The comment was condemned by some critics, who pointed to other historic achievements, like introducing voting rights for women and First Nations people, and the construction of the Red River Floodway.

The premier first hinted at a return of the cost-saving measure on Tuesday, when he raised the idea of a gas-tax cut during question period.

“Here in Manitoba, we’re focused on you. We cut the gas tax once, maybe we’ll do it again,” he said, replying to a question from Progressive Conservative leader Obby Khan.

Speaking to reporters Thursday, Khan said — if Kinew is serious about cutting the gas tax — he should do so immediately, rather than waiting a month.

“He could do it today if he wants to, he’s choosing not to. He’s choosing to use this as leverage and a political toy,” Khan said.

The Opposition leader said Manitobans are in the middle of an “affordability crisis” and need relief.

He called for the government to increase the personal tax exemption for Manitobans from $15,000 to $30,000, saying it would be a more impactful cost-saving measure.

tyler.searle@freepress.mb.ca