Some Manitobans stoked as 6-month gas tax holiday revs up on Jan. 1

Some Manitobans say they are thrilled to see savings at the gas pump in the new year.

Premier Wab Kinew's promised gas tax holiday will lift the provincial 14-cent-a-litre tax on gasoline and diesel fuel used by motor vehicles from Jan. 1 to the end of June.

The average Manitoba family will save an estimated $250 during that time.

The legislation, introduced as Bill 3 in late November and passed days later, was promised by the NDP during the recent election campaign as a way to help people with rising costs.

Mike Miclash says the temporary tax break will benefit all Manitobans.

"It will reduce the cost of living like buying groceries, filling vehicles, going to work — that kind of stuff," he told CBC on Thursday.

"That will be very helpful for Canadians. We're kind of hurting right now."

Alan Merrithew, who says he spends about $120 a week on gas, says the measure will help anybody who has a vehicle.

"It will make a world of difference," he said.

'Very good for us': Trucking company owner

The fuel tax brings in roughly $340 million a year for the province.

Prior to his election in October, Kinew said the six-month tax break would cost the province $165 million, but that his party is prepared to extend it so long as inflation remains high.

An amendment to the bill was made in early December to include cutting the three-cent-per-litre tax on marked fuel — dyed gasoline used in agriculture equipment — after the Opposition Progressive Conservatives accused the province of leaving farmers out of the fuel tax break.

Kuldip Singh, who owns Golden Temple Transport in Manitoba, says his company purchases about 200,000 litres of fuel per month for their fleet, which has routes of up to 3,400 kilometres per trip. 

"We welcome the decision, especially for trucking companies like us, at this time," Singh told CBC on Thursday.

"Everybody will benefit from this."

Singh says he hopes the tax break continues beyond six months.

"This is very good for us right now."

Watch: 

Gas tax reprieve starts on Jan. 1

11 months ago

Duration 2:15

The provincial fuel tax cut legislation, introduced in November, was promised by the NDP during the recent election campaign as a way to help people with the rising cost of living.