Quebec Gas Stations Are About to Get Much Busier
In a unlikely turn of events, gasoline is now cheaper in certain Quebec border towns than it is in Ontario, and this trend is expected to accelerate.
This marks a departure from decades of Ontario having the gasoline pricing advantage.
The cause of this pricing shift? Ontario recently increased its carbon tax by further $15/ton on April 1st 2024.
According to Data from Gasbuddy.ca, Gas in Ottawa Averaged $1.61/L on April 3rd 2024
While Just Across the Bridge, Gatineau’s Gas was Cheaper, Averaging Just $1.54/L
This trend is not only limited to the National Capital region, the differences in prices are similar when you compare other border towns, including Hawkesbury and Grenville.
Quebec Offers Tax Discount to Gas Stations Near Provincial Borders
Given that Quebec’s gasoline tax has been historically higher than in Ontario’s, in 2015, the Quebec government reduced the gas tax for gas stations located near a provincial border. The rationale provided was to help Quebec gas stations compete with those in Ontario.
The tax was lowered by:
- $0.02 per litre at stations within 15-20 kilometres of the border;
- $0.04 for those within 10-15 kilometres;
- $0.06 for those within 5-10 kilometres;
- and $0.08 for those within 5 kilometres.
This begs the question: Now that Ontario’s taxes have caught up, will the Quebec government keep this discount around?
Trend Expected to Get Worse
Barring any future policy changes, this trend favouring Quebec gas prices is expected to continue until at least 2030, according to calculations from The Northern Account.
The reason is that Ontario’s Carbon tax will increase by $15/ton every April 1st until 2030 when it will reach $170/ton, whereas the Quebec carbon tax is will only cost an estimated $97 per tonne by 2030.
Quebec will see slower gas tax increases, and it will have a lower final carbon tax.
This math points to a reversal of fortunes where Ontario drivers will be rolling into Quebec to save a bit on gas in 2024, and to save even more in 2030.
