Amid rising global fuel prices driven by conflict and supply disruptions in the Middle East, Canada’s new government is taking decisive action to provide immediate relief while strengthening long-term energy security. A key measure announced this week by Prime Minister Mark Carney is the temporary suspension of the federal Fuel Excise Tax on gasoline, diesel, and aviation fuel.
Effective April 20, 2026, and continuing until September 7, 2026, this suspension will eliminate the full federal excise tax on gasoline and diesel. The measure is expected to lower prices at the pump by approximately 10 cents per litre for regular gasoline and 4 cents per litre for diesel, offering meaningful savings to households and businesses across the country.
This targeted tax relief comes at a critical time at the start of the busy summer travel season. By reducing fuel costs, the government aims to ease financial pressure on Canadians while supporting key sectors such as transportation, agriculture, construction, and food distribution. Lower operating costs for businesses are expected to help stabilize prices, protect jobs, and encourage continued economic activity.
At the same time, the government is advancing broader efforts to build a more resilient and self-reliant energy future. Investments in electricity, liquefied natural gas, and nuclear energy are part of a long-term strategy to ensure Canadians have access to clean, reliable, and affordable power.
Combined with other measures, such as tax cuts for millions of Canadians and launching the new Canada Groceries and Essentials Benefit, this initiative reflects a balanced approach: providing immediate cost relief while laying the foundation for sustained economic growth and energy independence.