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Gas Prices Drop After Carbon Tax Cut

Canadian gasoline prices have fallen by about 18 cents per litre one month after Prime Minister Mark Carney eliminated the federal carbon tax, with nearly the full value of the tax cut being passed on to consumers, data shows.

Economist Trevor Tombe’s analysis demonstrates a clear price gap between Quebec, which maintained its provincial carbon pricing system, and the rest of Canada where the federal tax was eliminated on April 1.

The Bank of Canada’s April Monetary Policy Report states that the tax elimination will temporarily lower inflation by approximately 0.7 percentage points for one year, primarily due to lower gasoline prices.

You can read more on the matter here.

What’s going on?

• Danielle Smith Demands Energy Guarantees, Opens Door to Separation Vote (theDeepDive)

• Carney tells Trump Canada will ‘never’ be for sale as leaders meet at White House (CBC)

• Carney to Cut Canada Immigration from Record Peaks But Stay Above Historical Averages (theDeepDive)

• Canadian exports to U.S. slump, but surge to other countries (Globe)

• Albemarle, Perpetua Lead Mines List Fast-Tracked By Trump Administration (theDeepDive)

• Friedrich Merz wins second vote to become Germany’s chancellor (FT)

• Canadian Greg Abel Set to Succeed Berkshire Hathaway CEO Warren Buffett By Year-End (theDeepDive)

• Madrid’s House Prices Rise 24% as Real Estate Crunch Deepens (Bloomberg)

• Trump Slaps 100% Tariff On Non-US Made Films To Save “Dying” Hollywood (theDeepDive)

• EU to propose end-2027 halt to all Russian gas imports (Reuters)

• End of De Minimis Exemption Reshapes US-China Trade Dynamics (theDeepDive)

• Donald Trump to block Harvard from federal grants (FT)

What’s the latest?

• Brookfield: Brookfield Asset Management reported Q1 distributable earnings of $654 million (up 20% YoY) and plans to deploy some of its US$119 billion in dry powder to capitalize on global market volatility. The firm raised $25 billion during the quarter, including $14 billion for credit funds and $5.9 billion for its real estate fund. Fee-bearing capital rose 20% to $549 billion, while net income grew 32% to $581 million. Brookfield invested $16 billion and exited $10 billion in deals, and sees a potential $250M boost to fee-related earnings from growing its stake in investment managers like Oaktree and Castlelake.

• EU: The European Union is preparing to impose additional tariffs on approximately €100 billion (US$113 billion) worth of U.S. goods if current trade negotiations with the U.S. fail. This would be on top of the €21 billion in U.S. goods already facing EU levies in retaliation to Trump’s earlier tariffs. Talks have seen little progress, and the U.S. has now subjected up to €549 billion in EU goods to tariffs. The EU’s draft list will be shared with member states this week, with a month of consultation before finalization.

• Canada Post: Canada Post employees may strike or face a lockout after May 22, when the extension on current contracts expires, potentially marking a second service disruption in six months. Last year’s strike lasted 32 days, affecting 55,000 workers and millions of shipments. Ongoing talks, now with a mediator, focus on wages, job security, pensions, and health benefits, amid Canada Post’s worsening financial state. A government-commissioned report on the Crown corporation’s viability is due May 15 and could influence the bargaining outcome.

• US Stocks:  U.S. stocks dropped Tuesday as AI enthusiasm faded and companies withdrew forecasts due to uncertainty from Trump’s tariffs. The S&P 500 fell 0.4%, Dow Jones dropped 134 points, and Nasdaq slid 0.6%. Palantir plunged 11.7%, and Nvidia dipped 0.9%, highlighting AI’s cooling momentum. Ford expects a $1.5B tariff hit and paused its guidance, joining Mattel, Clorox, and others adjusting due to the tariff landscape. Meanwhile, 10-year Treasury yields dipped to 4.35% as the Fed began its policy meeting, with rate cuts still uncertain.

• WestJet: WestJet is suspending nine Canada-U.S. routes this summer due to weak demand, including flights to Orlando, L.A., and Chicago. A planned Vancouver-Austin route has been postponed until October. The airline cites trade tensions and anti-Canada rhetoric from Trump as key reasons behind reduced U.S. travel. Air Canada also reported a 10% drop in U.S. bookings and is reallocating capacity toward Latin America and other markets using its expanding fleet.

Lundin & BHP's Vicuna Project Unveiled

The stock market and stuff

• Logistics Penny Stock Gambles On Trump Coin In $20M Crypto Bet  (theDeepDive)

• Palantir falls 14% as analysts raise international growth concerns (CNBC)

• OPEC+ Accelerates Oil Production Despite Weak Demand, Prices Fall (theDeepDive)

• Skechers Accepts $9.4 Billion Buyout as Trade Tariffs Bite (theDeepDive)

In the juniors

• Silver One Outlines 108.8 Million Ounces Silver Equivalent M&I At Candelaria In Updated Resource Estimate (theDeepDive)

• Intrepid Metals Commences Drill Program at Corral Copper (JMN)

• Copper Giant Hits 0.38% Copper Equivalent Over 1,007 Metres At Mocoa In Step-Out Drilling (theDeepDive)

FULL DISCLOSURE: Rua Gold is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Rua Gold on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.