Manitoba Premier Wab Kinew says his government will spend the next month evaluating a possible cut to the provincial gas tax, but the decision hinges on whether gas prices start dropping.

Over the month, Kinew will monitor the impact of the scheduled two-week ceasefire between the U.S. and Iran on the price of filling up your tank, he said in an interview.

“Does the price of oil come down right away, and then people get help at the pump? Or do prices stay high for a long time, in which case, we may reduce the gas tax?” Kinew said to CBC Manitoba Information Radio host Marcy Markusa on Thursday.

The province eliminated its 14-cents-per-litre gas tax entirely in 2024 to help people with rising inflation.

He recently called the measure, which cost the province approximately $340 million in lost revenue, the most important thing ever done by a provincial government in Manitoba, “because it gave power back to the middle class and to the low-income folks.”

That comment resulted in pushback from people who said previous governments have accomplished more significant achievements, such as giving women the vote.

Gas tax reduced

The provincial gas tax returned in 2025, but at a reduced rate of 12½ cents per litre.

Kinew spoke Thursday of a possible reduction in the gas tax, rather than another elimination.

Gas prices across the country have shot up due to the Iran war.

In response to U.S. and Israeli attacks that began on Feb. 28, Iran restricted ship traffic in the Strait of Hormuz, through which one-fifth of the world’s oil is shipped.

That has led to one of the largest supply shortages in global energy market history and pain at the pumps as a result.

In Winnipeg, gas prices at some stations approached $1.80/litre on Thursday morning.

Kinew first hinted at a possible gas tax reduction during question period Tuesday when he said, unprompted, “here in Manitoba, we’re focused on you. We cut the gas tax once. Maybe we’ll do it again.” He wasn’t made available to talk to reporters afterward about his hint.

The premier said Thursday he’s hopeful the ceasefire, announced Tuesday, will last, but he’s not confident.

“By the way, like everything Donald Trump does, this is the worst ceasefire in history already, because who knows whether it’s going to last the next few days. I really hope it does.”

Iran said it would allow the resumption of shipping through the Strait of Hormuz during the two-week period, but the strait remained shut on Thursday morning.

Canada’s federal leaders are weighing in as gas prices climb.

Prime Minister Mark Carney said his government is monitoring gas prices closely and suggested an upcoming fiscal update would have more details on his government’s plans.

Meanwhile, Conservative Leader Pierre Poilievre has proposed a pause on federal taxes on gas and diesel for the remainder of the year.