CHARLOTTETOWN, P.E.I. – The islands will retreat in the new year by interrupting the pumps, thanks in part to the early implementation of provincial tax cuts to offset a federal carbon mandate.
The island's regulation and appeals committee announced on Tuesday, January 1, that at 12:01 hours gas prices will be reduced by two cents per liter. Diesel prices will drop by four cents per liter, while the prices of stoves and furnaces will fall by three cents per liter.
Prices of propane, however, will increase by 1.5 cents per liter for Irving Energy Distribution, or by 0.8 cents per liter for Superior Propane. Prices of Kenmac Energy Inc. will remain unchanged.
The fall in the price will be in addition to the fall of excise gasoline by 3.4 percent per liter and a drop in diesel taxes of 4.3 percent per liter, which will come into force on January 1. Excise taxes were initially announced as offsetting an increase in gas taxes of 4.4 cents per liter and an increase in diesel taxes of 5.3 cents per liter as part of the federal tax regime for carbon.
However, federal carbon taxes did not take effect until April 2019.
In December, Finance Minister Heath McDonald said reducing excise taxes for the first three months of 2019 would cost the province about $ 3 million in lost revenue.
On the whole, the pump price for regular, unleaded petrol will now range from 95.7 cents per liter to 96.8 cents per liter. Diesel prices will range from 114.7 to 115.8 cents per liter, while before tax prices for propane will range from 78.3 to 79.0 cents per liter.
The maximum price pre-tax for furnace will be 84.4 cents per liter.
The next commissioned commission will be on January 15.