Most drivers are, by now, all too familiar with the pain at the pump. But lately, as the war in Iran continues to disrupt global fuel supplies, that pain has been hitting harder. Canada’s national average gas price now sits around $1.81 per litre, having risen 28 per cent since the start of the war, with prices even higher in some cities. 

As a result, many Canadians will see the recently announced temporary suspension of the federal fuel tax on gas, diesel, and jet fuel as welcome relief. But even assuming retailers fully pass the tax savings on to drivers, that relief will be just as described: temporary. 

Following the announcement, Clean Energy Canada calculated that the tax holiday, set to last until Labour Day, will save the average driver of a standard-sized gas SUV roughly $14 per month, or $67, for the less than five months it is in place. This assumes typical driving over this time period (about 7,700 kilometres) and fuel economy (8.7L/100 km). 

It’s not nothing: those dollars could well cover a smaller grocery run or an outstanding phone bill. But compared with the savings from switching to an electric vehicle and ditching gas completely, the difference is stark. 

According to a recent Clean Energy Canada EV study and calculator using the 2025 average gas price ($1.42/L), that same driver driving a Chevrolet Equinox EV would instead save about $146 a month, or $680, in fuel savings alone over the next four-and-a-half months (EVs typically also have lower maintenance costs). More realistically, though, at today’s higher gas price ($1.81/L on April 16), the savings would be closer........

© National Observer