CAA understands that motorists need to have their voices heard on motoring and travel issues. This is why the CAA serves as a public voice for motorists and travellers and this includes the issue of high gasoline prices.

This web page is designed to highlight CAA advocacy and educational activities on this issue on behalf of CAA members and Canadian consumers, to provide links to information that will help consumers better understand the complexities of the retail gasoline market, to provide best practices that can be used to get the most from a tank of fuel, and to provide action-oriented steps that consumers can take to voice their opinions about gas pricing.

Gasoline is already one of the most highly taxed products that Canadians use every day, accounting for 30 to 40 per cent of the retail gasoline pump price. Although originally intended for fixing and maintaining our roadways, scarcely 2.5 per cent of this five billion dollar tax base is used for this reason.

“CAA believes road users must be protected from inequitable taxation policies that do not recognize the value of roads to the general public. Existing road-user revenues, such as fuel taxes, vehicle registration fees and driver license fees, should go towards funding road construction and maintenance. (Policy 1.3)

CAA position: Motorists are paying the taxes on gasoline and want to see a return on investment in the form of better roads and highways.

“Any form of motor vehicle taxation designed to restrict the use of private motor vehicles, to force motorists to change the type of vehicle they drive, or to supplement general revenues of any level of government, is opposed.

Further, the private motorist has a responsibility to bear only a fair share of the costs of the construction and maintenance of roads. Any taxation or levy of the motorist by licensing, gasoline tax or other means, by any authority within a province other than the provincial government, is opposed.” (Policy 2.)

“The federal government should reduce the excise tax on transportation fuels to a level commensurate with federal investment in roads and spread the remaining tax burden over a broader tax base consistent with a policy of fairness through tax reform.

In no case should the federal government retain special taxes or charges on transportation fuels to reduce deficits or to obtain revenue for general operating purposes.” (Recommendation 2.1.1)

CAA position: Remove the 1.5 cent per litre deficit reduction tax from gasoline.

Governments should ensure that any sales tax on gasoline is applied to the pre-tax price only” (Recommendation 2.1.1)

CAA position: Remove the GST (HST in NS, NB, NL) charged on top of the 10 cent federal excise tax

You can read more about how gasoline is priced here.

In light of recent budgetary surpluses, CAA has urged the federal government to better use the excise tax on gasoline and to avoid applying special taxes or charges on transportation to reduce deficits or to obtain revenue-generating funds at the expense of motorists and travellers for general operating purposes.

You can read CAA’s submission to the House of Commons Industry Committee here, and the follow-up letter to the Committee here.

Did you know that between 30 to 40 per cent of what you pay at the pump for gasoline goes directly towards taxes? CAA believes the federal government needs to look at more viable ways to use the revenues currently generated, including on our roads and highways, which are seriously under funded and crumbling away.

Year after year, we are told by our members, that they want to see more money invested into our roads and highways – money already paid in gasoline taxes. These current taxes ensure we have the capacity to begin to make these changes, now we simply need the will. This is especially true now that gasoline prices have risen to the highest level in years.

The federal government can no longer ignore Canada’s crumbling roads and highways upon which millions of Canadians depend for travel and business.

Although this tax was originally intended to channel funds into fixing and maintaining our roadways, scarcely 2.5 per cent of this five billion dollar tax base is used for this reason. It is time for the government to take action!

The role of government is clear – it must ensure that the retail gasoline industry operates on a level playing field and within market rules and regulations. Regulations must provide a high level of consumer protection. Government must have the power and the tools necessary to protect the public from unfair market practices. The federal government must continue to monitor all sectors of the petroleum industry in order to ensure that consumers obtain the full benefits of a truly competitive marketplace.

Instead of raising taxes or introducing new taxes, the federal government needs to look at more viable ways to use the revenues currently generated. The CAA is emphatically against any increase in gasoline taxes or the introduction of new gasoline taxes for Canadians. Year after year, we are told by our members that they want to see more money invested into our roads and highways – money they already pay in gasoline taxes.

CAA believes that the retail gasoline industry has a responsibility to ensure that prices at the pump are fair and reflective of a truly competitive market. There is a larger obligation to ensure that consumers have enough information to make choices and reach opinions that are well-informed.

This information should be right where consumers need it the most – at the pump. CAA calls on industry to ensure that the components that make up the pump price are clearly displayed on every gasoline pump in Canada.

In addition, many Canadians have little or no understanding of the intricate and complex nature of domestic retail gasoline pricing. This type of information should be provided in plain language and must be readily available to consumers. Retail staff representatives and operators must have adequate information to respond to general consumer inquiries.

Repeated governmental reviews of gasoline pricing find no evidence of collusion or gouging and yet consumer complaints persist. The retail gasoline industry should seriously consider the establishment of an industry-based consumer assistance program, including an arms-length “ombud-service” where consumer concerns or complaints can be handled appropriately. This type of industry-wide complaint resolution mechanism could also develop and promote standards and best practices relating to consumer complaints, promote its existence, and report on its effectiveness.

Industry-wide educational activities should be undertaken at every opportunity to raise public understanding about how the retail gasoline industry operates and how prices are determined.