Drivers in Newfoundland and Labrador will no longer pay provincial gasoline and diesel taxes starting December 1, 2026, under a new cost-of-living measure the provincial government announced.
Photo by Krish Parmar on Unsplash
Finance Minister Craig Pardy announced Monday that the province intends to reduce its gasoline and diesel taxes to zero cents per litre from December 1, 2026, through March 31, 2027.
The change is expected to provide $25 million in additional relief to residents and businesses facing higher fuel costs.
However, the government is planning to go beyond the initial four-month period.
Under proposed legislative amendments, the provincial fuel tax would remain at zero whenever gasoline and diesel prices exceed a specified threshold. The announcement did not identify what that price threshold would be.
The government plans to introduce the necessary legislative changes in the House of Assembly this week.
“Beginning December 1, residents will pay zero provincial gas tax on gasoline and diesel, putting real savings back into their pockets every time they fill up,” Pardy said.
The fuel tax reduction follows two other affordability measures announced last week.
The province is accelerating the Churchill Falls Electricity Rebate, which provides a 15 per cent reduction on the first 2,000 kWh of monthly residential electricity consumption.
It is also doubling the maximum Home Heating Supplement from $500 to $1,000 for the 2026 program.
Per the news release, those two measures account for $54 million in relief. Combined with the new fuel tax reduction, the province says its latest affordability initiatives total $79 million.
Since Budget 2026, the provincial government has committed more than $275 million toward helping residents manage everyday expenses.
For motorists, the immediate change is scheduled for December 1, subject to the proposed legislation taking effect. The longer-term tax exemption would depend on fuel prices and the threshold established through the legislation.
The provincial government says it plans further affordability announcements in the coming weeks.