OTTAWA (Reuters) - Members of the Conservative government have discussed cutting the diesel fuel tax, the National Post said on Monday, as the Liberal Party is proposing to increase taxes on diesel and other fossil fuels.
However, it quoted the office of Prime Minister Stephen Harper as denying a diesel tax cut was in the works and the newspaper said the Finance Department opposed the idea.
The excise tax of four Canadian cents a liter of diesel (14 U.S. cents per U.S. gallon) brings in about C$1 billion a year.
The differing plans for the tax comes as speculation ramps up that the Conservatives could call an election shortly.
Reporting by Randall Palmer; Editing by Scott Anderson