With winter approaching and families facing the rising cost of groceries, gas, electricity and home heating, the Official Opposition is calling on the PC Government to use increased oil revenues to provide meaningful affordability relief now.
The PC government has benefited from more than $500 million in additional revenue as a result of oil prices coming in above the assumptions in Budget 2026. The Finance Minister himself acknowledged that the province is seeing a significant increase in revenue from higher oil prices.
Premier Wakeham and Minister Pardy must use this extra revenue to help Newfoundlanders and Labradorians by immediately introducing affordability measures that put money back in people’s pockets.
Official Opposition is calling on the PC Government to:
- Eliminate the provincial tax on gasoline;
- Remove provincial sales tax from pre-packaged food; and
- Remove provincial sales tax from electricity and home heating.
The government has already shown that it can use provincial revenues to provide tax relief by extending the previous Liberal government’s eight-cent-per-litre reduction to the provincial gasoline tax.
The Finance Minister has said the government has numerous levers that it can pull. With additional revenue available, now is the time to pull those levers and provide more relief to Newfoundlanders and Labradorians.
Prince Edward Island has just suspended its provincial fuel tax until January 31, 2027, removing 8.47 cents per litre from gasoline and 14.15 cents per litre from diesel. If PEI can take action to help Islanders at the pump, the PC Government in Newfoundland and Labrador can take action to help people in our province.
Meanwhile, increasing fuel costs are further exacerbating rising food costs. To help address this, the Provincial Government should remove provincial sales tax from prepared foods such as rotisserie chicken and baked goods, and explore similar measures for low-cost prepared foods in restaurants as well. Manitoba has taken similar action to make food more affordable, and Newfoundland and Labrador should do the same.
While the PC Government offered a possible limited rebate on electricity bills, the unexpected oil revenue windfall gives them the ability to do more. Instead of a potential partial rebate later, they should provide a full rebate now.
“Newfoundlanders and Labradorians should not have to wait for another announcement, another review or a potential deal with Quebec to get relief,” says Leader of the Official Opposition, John Hogan, KC. “The PCs have more revenue coming in because of higher oil prices. This is an opportunity to put some of that money back into the pockets of people who are struggling to pay for groceries, fill their vehicles and heat their homes.”
The Official Opposition is also making it clear that these affordability measures should not be conditional on the Churchill Falls agreement with Quebec. People are struggling now and need relief before winter, not promises of what might happen if a deal is reached.
The PC Government has the ability to act. The Official Opposition is calling on Premier Tony Wakeham and his government to use the revenue available today to provide meaningful, immediate relief to Newfoundlanders and Labradorians.
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