Rising gas prices have governments, companies stepping in
Rising fuel prices due to the war in Iran have some companies and the federal government offering financial relief.
For example, DoorDash Inc. on Monday said it would offer its drivers additional pay equivalent to gas savings of 36 cents per litre, up to $36 per week between March 23 and April 25. It also said the program will not impact customer prices.
Gas prices reached an average of 172.4 cents per litre on Monday, according to the Canadian Automobile Association (CAA).
Last week, the federal government said it would offer financial aid to Canadian farmers and agricultural businesses dealing with the rise in gas and fertilizer prices.
Under the plan, Farm Credit Canada borrowers could receive an additional line of credit worth up to $500,000.
Nitrogen fertilizer prices have climbed more than 40 per cent in the past week.
But some are calling for even more action.
The Canadian Taxpayer Federation last week called on both the federal and provincial governments to scrap the carbon tax and reduce gas taxes to help lower costs at the pump. It said gas taxes amount to about 65 cents per litre in some Canadian cities.
“Drivers are feeling the pain of high gas prices and taxes are making things more expensive,” Franco Terrazzano, CTF federal director, said in a news release . “Canadians even pay taxes on top of taxes when they fuel up. Politicians can make life easier for taxpayers by cutting gas taxes.”
But Alberta Premier Danielle Smith told her weekly radio program listeners not to expect any gas tax breaks in the near term, mostly because gas taxes in the province are only about 13 cents per litre.
“We could take that off, but you’ll still be facing the high prices at the pump because the world prices are just out of our control,” she said.
Some relief at the pumps may be on the way, however, as United States President Donald Trump announced a five-day halt on attacks against Iran. Oil prices plunged 14 per cent following the announcement.
In the meantime, CAA recommends accelerating smoothly, reducing speed and maintaining vehicle maintenance to save on gas.
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