Eby promises 10-cent fuel tax cut, ‘price guard’ in B.C.

ASM, Philippine Canadian Inquirer
October 02, 2026

Photo courtesy: CityNews Vancouver

SURREY, British Columbia – B.C. NDP Leader David Eby is promising to temporarily cut the provincial motor fuel tax by 10 cents per litre and introduce regulated maximum prices for gasoline and diesel if his party returns to government after British Columbia’s October 24 provincial election.

Eby announced the proposal in Surrey on October 1, saying the two measures combined could reduce costs at the pump by up to 30 cents per litre and save drivers as much as $20 on a 68-litre fill-up. 

Those savings are estimates provided by the B.C. NDP and would depend on fuel prices and other market factors. 

Under the plan, the provincial motor fuel tax on gasoline and diesel would be temporarily reduced by 10 cents per litre. 

The B.C. NDP estimates the measure would cost approximately $280 million through April 2027, while maintaining funding for public transit and improvements to roads and highways. 

The second part of the proposal would establish a “price guard,” giving the B.C. Utilities Commission (BCUC) authority to set maximum retail prices for gasoline and diesel.

Under the proposal, the maximum price would generally be updated weekly based on changes in benchmark crude-oil prices, along with allowances for refining and retailer margins, transportation costs, taxes and other factors. Prices could also vary by region to account for differences in distribution, storage and operating costs. 

Eby said the measure is intended to protect motorists from what he and the B.C. NDP characterize as excessive industry margins during periods of global oil-price volatility.

The party cited the BCUC’s latest quarterly monitoring data, saying gasoline prices in B.C. increased by an average of 36 cents per litre following the start of the U.S.-Iran war. 

According to figures cited in the NDP release, 22 cents of that increase was attributed to higher crude-oil costs, while industry margins increased by 20 cents. A six-cent reduction in taxes partially offset the increases. 

The NDP estimates that if fuel industry margins had remained at their previous levels, British Columbians would have spent about $865 million less on gasoline and diesel during the period. The figure is the party’s calculation based on BCUC data. 

For consumers, the party estimates a compact-car driver could save up to $15 per fill-up, while a typical two-car family in Surrey could save as much as $100 per month under the combined measures.

The proposal would also apply to diesel. 

The NDP estimates a short-haul truck using a 400-litre tank could save up to $116 per fill-up, while potential savings for long-haul operators could be higher depending on fuel consumption. 

The tax reduction and “price guard” are campaign proposals and are not currently in effect. British Columbia’s provincial election was called on September 22, with Final Voting Day scheduled for October 24.