A rainy-day gas reserve for Canada

Canada is sitting on the third-largest oil reserves in the world, yet when a crisis hits and supply is disrupted, we are at the mercy of the markets without our own reserve stock.

Life in Canada is becoming unaffordable, and Canadians are desperate for relief.

Canadians paid almost 55 per cent more for gasoline in June than they did the year before and, as everyone pays more for fuel, it’s driving up the costs of everything else we buy.

Driving is less affordable, and reports show Canadians are cutting back on essentials, even eating less food because of the higher prices.

Food banks are overwhelmed, and demand only seems to be growing.

While the Liberals would like to blame it all on Russia’s invasion of Ukraine, taxes, broader global supply chain challenges, and a lack of domestic production are all at play.

Depending on where you live in the country, gas taxes could make up to 38 per cent of the price you pay at the pump.

So as gas prices have soared, the government has been floating in gas cash, inflating both prices and the size of the government.

Meanwhile, Canadians struggle to feed themselves and these short-sighted policies hurt the lowest income Canadians the most.

The most offensive of these taxes is the carbon tax.

On April 1st, Trudeau increased the carbon tax, bringing it to about 11 cents a litre.

That decision made Canada the only G7 country to increase the price of gas for its citizens during a global energy crisis.

As I’ve stated before, I will cancel the carbon tax, but there are other taxes that Canadians need to know about.

Every time you fill up at a gas station, the Liberals aren’t just taxing you, they are taxing you on their own taxes – the GST/HST you pay is calculated on all the other taxes including the federal excise tax and carbon tax.

It’s adding an extra 4.1 cents per litre on average to the price, equalling about $1 billion per year in revenue for the government.

As Prime Minister, I will eliminate this hidden and dishonest tax-on-tax, and provide some immediate and permanent relief to Canadians at the pumps.

We need to do everything we can to stabilize prices, drive down inflation and keep the economy moving.

That’s why I also agree with calls from other campaigns to suspend federal taxes on gas for the summer. At $1.75/litre, suspending all federal gas taxes would save drivers about 25 cents per litre.

But this isn’t enough – we need longer-term solutions.

Global supply issues are a key driver of the prices we’re seeing.

Canada is sitting on the third-largest oil reserves in the world, yet when a crisis hits and supply is disrupted, we are at the mercy of the markets without our own reserve stock.

Most of us have heard the adage, “save for a rainy day.”

In addition to building up our oil and gas capacity, it’s time for Canada to join other major oil producers to establish a National Strategic Oil Reserve to ensure a baseline supply of oil in the event of global market shocks and disruptions like geopolitical wars and illegal rail blockades.

I first unveiled this policy in my 2020 platform, and I believe this policy is needed now more than ever. 

It will require investment and partnerships across industry and governments, but if we’re serious about protecting Canada’s interests in an increasingly dangerous world, it’s a strategic necessity.

Canadians have suffered enough these past two years, and what they need right now is stability and hope.

It’s time Canadians have a Prime Minister who will fight for affordability while delivering on a vision for energy security and prosperity that puts Canadians first.

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The writer Dr Leslyn Lewis is a Canadian lawyer and member of the House of Commons of Canada who is also running to be Leader of the Conservative Party of Canada.

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