Provincial government cutting gas tax on gasoline and diesel to zero beginning December 1

News October 26th, 2026

Newfoundlanders and Labradorians will pay zero provincial gas tax on gasoline and diesel fuel beginning December 1, 2026, as the Provincial Government delivers further cost-of-living relief to residents across the province.

The Honourable Craig Pardy, Minister of Finance, today announced that the Provincial Government is reducing the provincial tax on gasoline and diesel to zero cents per litre from December 1, 2026, to March 31, 2027. The Provincial Government will propose legislative amendments this week in the House of Assembly, with the intention of bringing these tax changes into effect. 

This means more money staying in the pockets of Newfoundlanders and Labradorians every time they fill up at the pump, meaning residents and businesses will all benefit from lower fuel costs.

The Provincial Government is also taking further action to protect residents from volatile fuel prices.

Through legislative amendments, the Provincial Government will establish a measure that keeps the provincial gasoline and diesel tax at zero for as long as fuel prices remain above a specified threshold.

This additional protection means that when fuel prices are high, Newfoundlanders and Labradorians will not face the added cost of provincial fuel tax on top of those higher prices.

Today’s announcement represents an additional $25 million in affordability relief for residents and builds on the $54 million in measures announced last week, including the accelerated Churchill Falls Electricity Rebate, providing a 15 per cent reduction in residential electricity bills on the first 2,000 kwh consumed each month, and doubling the maximum Home Heating Supplement from $500 to $1,000 for the 2026 program.

Together, these three measures represent $79 million in new cost-of-living relief for Newfoundlanders and Labradorians.

Since Budget 2026, the Provincial Government has committed more than $275 million to help residents manage the rising cost of everyday living.

Today’s announcement is part of the Provincial Government’s ongoing commitment to making life more affordable, with additional measures to be announced in the coming days and weeks.