As feds cut gas tax, B.C.’s growth minister warns of other Iran war impacts

Jobs and Economic Development Minister Ravi Kahlon is seen in Delta, B.C., on Wednesday, July 2, 2025.

VICTORIA — The American war with Iran isn’t just a problem at the gas pump — B.C.’s minister of economic growth says fertilizer and pharmaceutical ingredients could also be in short supply.

Ravi Kahlon says the federal government’s move to suspend some taxes on fuel will likely be swallowed up as the tension escalates over the dispute in the Middle East.

He says the bigger problem that needs to be of national discussion is the possible strain on agriculture, as 40 per cent of the fertilizer needed by farmers comes from that region.

Pharmaceutical inputs, or the raw materials for many prescription medications, also come from that area, and Kahlon says discussions are needed about those supply chains.

As for following the federal government with a gas tax cut, Kahlon says the province will look at measures that can provide support to residents.

Premier David Eby and Kahlon announced a cross-government task force this week to monitor the impacts of the Iran war and help to prepare B.C. residents for the potential global impacts.

Kahlon says it will look at a complete spectrum of the challenges.

“Not just the fuel pump question — which is important — but also how do we ensure we have medicine, how do we ensure we have food, how do we ensure we have the fertilizer we need, how do we ensure that our supply chains can adapt to the challenges that we’re seeing all around the world,” he said Tuesday.

When announcing the task force, Eby said federal and provincial governments needed to co-ordinate their responses to ensure the best outcomes for Canadians.

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This report by The Canadian Press was first published April 14, 2026.