Yukon government asked to roll back fuel tax as prices rise

Yukon's government is facing mounting calls from the opposition to suspend the territory's fuel tax for a year to relieve pressure at the pumps. 

The call comes as some provinces, like Alberta and Saskatchewan, have decided to roll back their fuel taxes to mitigate the impact of record-breaking fuel prices for consumers for at least the next few months.  

In Whitehorse, prices averaged $1.79 per litre for gasoline and just under $2 for diesel on Tuesday. 

Currie Dixon, leader of the Yukon Party, suggested that the Yukon government follow its provincial counterparts.

"This is one of the biggest issues in the country right now," Dixon told the legislature. "It's clear that it's not even remotely considered in the budget." 

The current fuel tax in the Yukon is 6.2 cents per litre of gasoline and 7.2 cents per litre for diesel. Estimates from 2019 say it costs the average household $260 dollars a year. 

Crude oil reaching its highest prices since 2008, along with Russia's invasion of Ukraine and residual strain on the industry from the COVID-19 pandemic, have all contributed to the high prices.

Ranj Pillai, the territory's economic development minister, suggested that the decision to roll back fuel taxes is seen as a "boutique" political move instead of a "good policy" one. 

So, he said the territory will watch and wait. 

"What we will do, as we've done all along, is continue to monitor and adapt as we've done," Pillai said.

Pillai also pointed to measures in the territory's most recent budget that will help make life more affordable, like commitments to territory-wide childcare and investments in the housing supply.