Carbon Tax Removal Sparks Gas Price Uncertainty in British Columbia

As the sun rose on April 1, British Columbians awoke to a new chapter in Canada’s climate and energy story. With both the provincial carbon tax officially removed and the federal consumer levy temporarily suspended, gas stations across the province began posting fresh figures. Anticipation ran high, with economists forecasting a 17 to 18.5 cent per litre drop in gas prices—welcome news for commuters battered by record highs just days before.

But the road ahead may not be as smooth as some had hoped. Observers noted that gas prices had curiously spiked to nearly $2 per litre just before the tax rollback, leading to accusations that oil companies were padding prices. While provincial leaders promised gas price transparency, Premier David Eby urged fuel suppliers to fully pass along tax savings to drivers, warning that failure to do so could trigger regulatory pushback.

Behind the scenes, the financial trade-off was steep. In rushing the legislation through, the BC government opened a $1.5 billion budget shortfall and rescinded key climate action rebates. While common motorists got a break at the pumps, industrial polluters remain on the hook, still subject to targeted emissions pricing. The move drew sharp criticism from the Green Party, who warned that dismantling carbon pricing mechanisms erodes long-term climate policy—and hands a win to fossil fuel lobbyists.