Manitoba is bleeding families dry with its gas tax

Every trip to the grocery store now costs more because the NDP chose to raise its fuel tax

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Manitoba Premier Wab Kinew should make history again by making his province the only province in Canada to be gas tax free.

Kinew recently said that his government’s previous gas tax cut was “the most important thing that a provincial government ever did in the history of Manitoba.”

Taxpayers agree with Kinew that cutting taxes and saving them money is a very important thing.

It’s time for Kinew to bring back the gas tax cut permanently and save drivers serious money.

Gas prices in Manitoba have surged more than 30 cents per litre since March 1. Gas prices are the highest they’ve been over the last four years. When families are being squeezed by high gas prices, the government should not be piling taxes on top.

The Manitoba government previously cut its provincial gas tax by 14 cents per litre for the entirety of 2024. The government hiked the gas tax to 12.5 cents per litre on Jan. 1, 2025.

Every fill-up costs Manitoba families about $9 in tax for a minivan and $11 for a pickup, adding up to roughly $550 a year just for driving to work, school and the grocery store.

If the government had extended the gas tax cut or made it permanent, that $550 could have been used to pay for groceries, a car payment, or a big chunk of rent or a mortgage payment.

Almost half of Manitobans are struggling financially, according to surveys. The fact that a Manitoba family making $75,000 a year pays more provincial taxes than a similar family anywhere else in Western Canada does not help Manitobans ease those financial struggles.

A gas tax cut provides needed relief because it helps families save on something they have to buy. You have to fill up your car to drive to work or pick up your kids from school. The government should make it as affordable as possible.

And the premier has made this point himself more than once.

“We have heard loud and clear from Manitobans that this has been something that has made a difference,” Kinew said in another interview about the gas tax cut. “If it was up to me, the holiday would last forever.”

And Manitobans agreed with Kinew. Before Kinew hiked the tax back up, polling showed that 70 per cent of Manitobans wanted the gas tax to be cut permanently. That’s about as popular as a political policy can be.

Manitoba’s fuel prices were also the lowest in the country during the year the fuel tax was cut. The NDP election platform says that the gas tax cut would remain in place “while inflation remains high.”

Manitoba had the highest inflation in the country during 2025. And now the provinces of Ontario, New Brunswick and Newfoundland and Labrador all charge lower per litre fuel taxes than Manitoba.

Bringing back the tax cut would not require sacrifice, only some basic spending discipline.

If the government had simply held spending at last year’s level, which was already at a record-high level, the government would be projecting a $695-million surplus this year instead of a $498-million deficit.

The gas tax is projected to bring in about $320 million in revenue for the government this year. That means that if the government completely cut the fuel tax after holding the line on spending, the government would still have about $375 million left over to start paying back debt or to use for other tax relief.

And having that fiscal discipline is worth it to cut the gas tax and save Manitoban families more than $500 every year.

Kinew’s gas tax cut was important because it gave Manitoban families some much-needed breathing room in their budgets. He needs to bring the tax cut back and make it permanent.

Gage Haubrich is the Prairie Director for the Canadian Taxpayers Federation.