Gas prices in the GTA will drop by 20 cents a litre tonight. Here is why

CP24's Melissa Duggan reports on an expected drop of 20 cents a litre for gas with the consumer carbon tax ending on Tuesday.

Gas prices in the Greater Toronto Area will drop significantly overnight, as the federal consumer carbon tax is set to be no more as of April 1.

Earlier this month, Prime Minister Mark Carney announced that the federal government would scrap the tax in April.

The move is expected to lower the price of gas across the country.

GazWizard.ca – which is run by industry analyst Dan McTeague – is currently estimating that gas prices will go down by 20 cents overnight in the GTA.

The current average price per litre in the GTA sits at just under $1.57. GasWizard.ca is projecting it to drop to around $1.37 per litre.

McTeague says the current carbon tax levy on gasoline sits at 17.61 cents a litre, and motorists in Ontario can expect to see the price at the pumps drop by at least 19.9 cents a litre at midnight on April 1.

“It’s a pause in carbon taxes, not just for gasoline, but also for diesel and anything we use, like aviation fuel, propane, natural gas, that also stops being charged, effective at midnight tonight,” McTeague told CTV News Toronto.

“So, all these prices will come down effective midnight tonight, and that should be reflected at the pumps.”

Ontario Premier Doug Ford took to social media to react to the expected price drops, writing in part, “At midnight tonight, Canada is finally done with the federal carbon tax, the worst tax ever.”

With files from CP24’s Codi Wilson