Manitoba has given its residents a reason to smile as it rolled out a gas tax holiday, waving goodbye to the provincial tax on fuel. Dan McTeague, the President of Canadians for Affordable Energy, gave a closer look at how this decision has positioned Manitoba as the frontrunner in Canada for the most affordable gas prices. 

McTeague expressed optimism, citing the combination of falling oil and gasoline futures prices, a well-supplied market, and favourable weather conditions contributing to this positive outlook. 

"Gas prices, which we've seen in the vicinity of $1.21 to $1.28," McTeague explains, "will be a lot closer to $1.10 if that hasn't happened already, given, of course, that we've seen oil and gasoline futures prices drop rather dramatically throughout the month of November and December. So, we could very well see that develop in the next couple of weeks. Manitobans could very well look at a scenario unfolding where they could be backed down toward a dollar a litre and that's something we haven't seen since the days of the lockdown in COVID." 
The impact isn't confined to the gas pumps alone. With diesel prices also expected to decrease, Manitoba's transport infrastructure becomes more competitive nationally. This shift could have a ripple effect, reducing the overall cost of goods and services. 

However, McTeague acknowledged the unpredictability of the energy market. Factors like seasonal fuel blend changes, carbon tax increases, and global tensions may introduce some fluctuations in fuel prices. Despite these potential hurdles, Manitobans can enjoy a temporary reprieve from the usual volatility. 

McTeague acknowledged the government's commitment to its promise of a gas tax holiday. He noted that as gas prices fall below $1.20, public interest tends to wane, but the affordability is appreciated. 

"I think it's good news, obviously, and it's the government making good on its promise. It comes a time in which many provinces are starting to think, 'Well, maybe it's not the best time to continue lower prices as prices are heading lower, anyway.' I can see the numbers lessening in interest in energy gasoline prices. Once you're below $1.20, people start to tune out. It hits a point where they're not happy about it, but at least they can afford it. When you're $1.80, $1.70, that's a different story altogether."