Surging gas prices: Quebec can take action to reduce what drivers pay at the pump

• An increase of 11.1 cents per litre brings in $98.1 million for the Quebec government

Montreal, March 5, 2026 – The Quebec government’s coffers are swelling thanks to the increase in the price of oil in the context of the war in Iran, points out an MEI analyst.

“Each increase in the price of gasoline brings in millions of dollars of additional tax revenue for the Quebec government,” explains Gabriel Giguère, senior policy analyst at the MEI. “The increase of 11.1 cents per litre seen since last week would bring the provincial government $98.1 million on an annual basis.”

Last week, the average price at the pump in Quebec was 144.0 cents per litre. It’s now 155.1 cents a litre, on average, according to data from the Régie de l’énergie.

Quebec drivers pay up to six different taxes on every litre of gasoline they purchase.

The increase of 11.1 cents per litre over the past week leads to higher revenues from the Quebec sales tax.

The most recent available data indicate that Quebecers buy 8.9 billion litres of gasoline per year.

An increase of 11.1 cents per litre therefore entails additional QST revenues of $98.1 million on an annual basis.

Quebec drivers are already faced with some of the highest prices in the country, notes the researcher.

“With the rising cost of living, Quebec should use the levers it has at its disposal to reduce Quebecers’ expenditures,” adds Mr. Giguère. “Instead of profiting from the situation to fill up its coffers, the government could lower certain fuel taxes in order to give families a break.”

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The MEI is an independent public policy think tank with offices in Montreal, Ottawa, and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.

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