The Manitoba government is ending its yearlong fuel tax holiday but bringing back the levy at a lower rate.

The government temporarily suspended the 14-cents-a-litre tax on gasoline and diesel at the beginning of 2024 as a way to help people deal with the rising cost of living.

The tax is now back as we begin the new year  at a rate of 12.5 cents per litre  roughly 10 per cent lower, the NDP government announced Monday.

Lower tax rates on other fuels, including propane and marked fuel used in agriculture, are also being reinstated at a 10 per cent lower rate.

Figures from Statistics Canada show Manitoba’s inflation rate for fuel was the lowest among provinces compared with a year earlier. But Manitoba also saw the steepest inflation on food over the same period.