Retirment Asset Allocation RRSP Graphing Calculator RRSP Tax Savings Calculator After-Tax Returns Calc. Let's take means, opportunity and motive as a framework to examine whether the federal Liberals should cut gasoline taxes as urged by their political opponents. The opportunity comes in part from the rise in oil prices. All this growth has increased the demand for oil. Meanwhile, OPEC has been its usual fractious self in slowly, begrudgingly and haltingly responding to reality by raising production quotas.
Demand outstripping supply equals higher oil prices, most noticeably at the gas pump.
The opportunity also comes from the fact that the provincial and federal governments add to the price of gasoline with taxes. Provincial taxes are all over the map, varying from about six to 16 cents a litre plus, in some cases, sales taxes. Revenues from the fixed portion of the tax don't change with the price of fuel, but GST revenues do. So, the federal government has the opportunity to reduce the price at the pump by cutting its taxes. High gas prices hurt some people more than others.