As Quebecers are paying more at the pump, concerns about businesses being less competitive

The Legault government says it’s not reducing its carbon tax system, meaning Quebecers continue to pay more and businesses will be less competitive.

It’s no secret that Quebec’s gas prices are higher than in the rest of Canada.

The François Legault government says it’s not interested in reducing its carbon tax system to bring the prices down and that means Quebecers continue to pay more and businesses here will be less competitive.

In Montreal, drivers are feeling pain at the pump.

“It’s not fair because everywhere in Canada, it’s cheaper,” one driver told CTV News.

• READ MORE: Legault government closes the door on gas tax cut

On Wednesday, the Parti Québécois (PQ) called for a gas tax reduction in Quebec to bring gas prices in line with other provinces, but the Coalition avenir Québec (CAQ) refused, saying it was out of step with the province’s climate change objectives.

In April, the federal government ended the consumer carbon tax, but Quebec has its own version and didn’t follow suit. Not only are gas prices lower everywhere else, but inflation in Canada cooled to 1.7 per cent last month, largely because of the lower price of gas.

Quebec’s annual inflation rate, however, rose 0.3 per cent.

“We are worrying about the competitiveness of enterprises in Quebec,” said François Vincent, the Quebec vice-president of the Canadian Federation of Independent Businesses (CFIB).

The CFIB says companies that compete with provinces like Ontario could lose contracts because of the higher price of gasoline.

“We are worried also that it will impact retailers, for example, because citizens will have less money and will spend less in these businesses,” Vincent added.

The Canadian Taxpayers’ Federation (CTF) says in light of the trade war with the United States, it’s the worst time to double down on a gas tax.

“It’s costing between 0.5 and 0.7 per cent of our GDP annually,” said Nicolas Gagnon, the CTF’s Quebec director. “And it’s clearly just adding pressure on our businesses right now.”