NL Government cutting provincial tax on gasoline, diesel to zero starting Dec. 1

The provincial government announced Monday it will be dropping provincial tax on gasoline and diesel to zero cents per litre from Dec. 1, 2026 to March 31, 2027.

Craig Pardy, Minister of Finance, made the announcement as part of government’s efforts at cost-of-living relief to residents of Newfoundland and Labrador.

Government will propose legislative amendments this week in the House of Assembly, with the intention of bringing these tax changes into effect.

“Newfoundlanders and Labradorians have told us that the rising cost of living is putting pressure on their household budgets, and we’re taking action,” Pardy said.
“We’re also going further by putting protections in legislation to keep that tax at zero when fuel prices are high. This is another $25 million in relief, building on the affordability measures announced last week.”

Pardy said the announcement represents an additional $25 million in affordability relief for residents and builds on the $54 million in measures recently announced, 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.