Reduce gas price in Quebec using carbon tax revenue: think tank
Posted November 13, 2025 10:12 am.
Last Updated November 13, 2025 12:42 pm.
Quebec should use the carbon tax revenue to reduce gas prices in the province, according to Montreal Economic Institute (MEI).
In a press release, the think tank called on the CAQ government to narrow the gap in gas prices in Quebec, which they say are some of the highest in Canada.
MEI said the gap increased, especially, after Mark Carney eliminated the consumer carbon tax in March.
“For Canadians across the country, Ottawa’s decision to abandon the consumer carbon tax means lower prices at the pump, everywhere except Quebec,” says Gabriel Giguère, senior policy analyst at the MEI and author of the report.
The tax cut didn’t apply to Quebec and British Columbia as the two provinces have their own carbon cap-and-trade system. In case of Quebec, it is jointly administered with California.
According to the MEI report, between March and September, the difference in fuel price in Montreal compared to the rest of the country went up about five times — from 3.7 cents more to 18 cents more
In Quebec City, where the gas price was 0.8 cents below the national average, it increased to 14.6 cents above, during the same time.
MEI said the recent legislation Bill 7 — introduced by Quebec Treasury France-Elaine Duranceau — aimed to reduce bureaucracy should also re-distribute the carbon tax revenue to reduce taxes on fuels.
“Using the Green Fund surplus to reduce gas prices would be a step in the right direction, but we should go even further,” said Giguere.
