OTTAWA, Ont.— Consumers will continue to see federal excise tax relief at the gas pumps well into next year.
At an announcement Wednesday in Ottawa, federal Minister of Finance and National Revenue François-Philippe Champagne announced the government will be extending the temporary suspension of the federal fuel excise tax to Jan. 31, 2027, after which the government will apply 50 per cent of the regular excise tax rate from Feb. 1 through March 31, 2027.
The fuel excise tax would return to its normal amount on April 1, 2027.
“With many families still feeling the pressure of higher costs, we’re extending the federal fuel tax suspension to keep more money in Canadians’ pockets. This will provide meaningful relief for families and businesses and help make everyday life more affordable," said Champagne in a statement.
This continues the suspension of the federal excise taxes which began April 20, 2027 in response to the spike in fuel prices due to the war in Iran and disruptions to shipments in the Strait of Hormuz.
Those excise taxes that remain suspended are the 10 cents per litre tax on gasoline and unleaded aviation gasoline, 11 cents a litre on leaded aviation gasoline, and four cents a litre on diesel and aviation fuel.
News that the fuel excise tax will remain suspended was welcomed by the Canadian Taxpayers Federation, who had been actively campaigning against the lifting of the suspension of excise taxes that had been set to expire on Sept. 8.
While they welcome word the suspension will continue into 2027, CTF said in a news release they want the government to go even further and make the removal of the excise tax permanent.
“The Canadian Taxpayers Federation has been pushing for gas tax relief for a long time and the government’s decision to cut taxes at the fuel pumps will help a lot of people this fall,” said Franco Terrazzano, CTF Federal Director, in a statement Wednesday.
“Canadians made it clear they can’t afford to pay more to fuel up and pay more for everything that’s trucked to store shelves and it’s good the government listened to taxpayers and extended the relief. Now Carney needs to cut spending to make this tax cut permanent without ballooning the debt.”
