No April Fool’s Day joke. Gas prices drop 20 cents a litre in Ottawa

Gas price expert Dan McTeague is predicting a big drop in the price of gas. CTV’s Matt Skube explains why.

The calendar says April 1, but it’s no April Fool’s Day joke for motorists as gas prices drop 20 cents a litre at Ottawa stations.

Canadians for Affordable Energy President Dan McTeague says the federal government’s move to lift the consumer carbon tax from fuel prices is the reason prices have dropped 20 cents today.

Gas stations in Ottawa are selling gas between $1.359 and $1.366 Tuesday morning.

Gas was selling for an average of $1.55 on Monday.

“It’ll be pretty magnificent for a lot of people. If you happen to be using 30 to 40 litres a week, the savings will be about $10. If you happen to be a diesel truck driver, the savings will be closer to $15, if you’re using 40 litres,” McTeague told CTV News Ottawa.

“Anything above that, says delivery vans or trucks, things like that, which might use 100 or 150 a week, the savings will be astounding.”

McTeague says as of 12:01 a.m. April 1, gas bars are no longer required to collect the 19.9 cent carbon tax on gasoline or the 24.2 cents for diesel (with HST).

• Find the lowest gas prices in Ottawa

Just hours after being sworn-in on March 14, Prime Minister Mark Carney announced the government would reduce carbon pricing for consumers to zero as of April 1.

“We will be eliminating the Canada fuel charge, the consumer fuel charge, immediately,” Carney said, with the government saying the fuel charge would be removed on April 1.

For Andrees Said, whose job relies on a vehicle as a delivery and part-time Uber driver, a long-term plunge in price at the pumps could be hugely beneficial.

“Today’s a good day and if the gas goes lower, it would be amazing,” he said.

“If this continues for an entire year, it’s going to be like $8,000 or $9,000 I can save.”

While the carbon tax is not being collected, the footprint of the legislation still exists, leaving motorists like Richard Vanawin skeptical of lower gas prices post-election.

“It is important to me because I drive a lot during the day. Today cost $105, so right now, this is probably saving me about $45,” he said, noting that as a contractor, driving a large pickup truck is necessary for work and requires a daily fill-up.

“I think it’s just a political gain from the Liberals that they want to get re-elected and right now, it’s a quick way to put a couple bucks back in people’s pockets.”

• The end of the ‘carbon tax’ will bring down gas prices, but not in Quebec

According to GasWizard.ca, gas prices will drop 20 cents a litre in Toronto and 9 cents a litre in Kingston.

Federal carbon pricing for consumers is in effect in all provinces and territories except Quebec, British Columbia and the Northwest Territories. The British Columbia government is aiming to drop the province’s consumer carbon tax at midnight.

“Quebec, which has its own cap and trade system, will not see a decrease,” McTeague said.

With files from the Canadian Press and CTV’s Tyler Fleming