The provincial government is extending the gas tax reduction for another year.

The 7-cent-a-litre tax reduction for gasoline and diesel was initially set until Jan. 1, 2023. It was later extended until March 31, 2023. Further extending the tax reduction until March 31, 2024, will cost $63.4 million. Budget 2023 will be delivered in the House of Assembly on Thursday, March 23.

This maintains a lower price at the pump by 8.05 cents per litre (including HST). The government says the 7.5 cent-per-litre tax on gasoline in Newfoundland and Labrador is the lowest among provinces other than Alberta.