Premier to 'pay politically' for gas price increase
CBC News
Posted: Dec 8, 2012 1:25 PM AT
Last Updated: Dec 8, 2012 3:13 PM AT
Premier Robert Ghiz (CBC)Prince Edward Island's premier said he predicts the price of gasoline will rise between five and eight cents a litre when the new harmonized sales tax begins next April.
Robert Ghiz said he expects his party to pay a political price, but he also said his government reduced gas taxes by more than four cents a litre when it first came to power in 2007.
"When you put everything in perspective, there's not that large of an increase. But right away, today's impact, there is. And I know that we're going to pay politically for that, but I'll explain it out in that manner whenever I get the chance to sit down at somebody's kitchen table or knock on somebody's door," he said.
The sales tax charged on gas will rise by nine per cent with the HST, but the Island government promises to reduce its excise tax to lessen the increase.
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