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Ottawa extends the pause on federal fuel excise tax to 2027

Click to play video: 'Canada’s Champagne extends federal fuel excise tax pause to January 2027'
Canada’s Champagne extends federal fuel excise tax pause to January 2027
WATCH: Canada’s Champagne extends federal fuel excise tax pause to January 2027.

Finance Minister François-Philippe Champagne said Wednesday that the current pause on the federal excise tax on gasoline and diesel will be extended until next February.

The extension was first reported by Radio-Canada and confirmed by Global News’ sources Wednesday morning.

The federal excise tax on gasoline was 10 cents a litre and the tax on diesel was four cents a litre but those taxes were suspended in April. The suspension was to have ended on Sept. 8.

Now, with fuel prices pushing higher because of renewed hostilities in the Iran war, the government will extend that suspension.

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“Canadians did not cause these global challenges, it’s very clear. But they are feeling the consequences,” Champagne told reporters Wednesday.

“This is real relief right now. Relief for families that are commuting to work … driving their children to activities or managing the cost of everyday life, these savings add up.”

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Click to play video: 'Feds extend gas tax break into 2027'
Feds extend gas tax break into 2027

Champagne said the fuel excise tax suspension will remain in place until the end of January 2027, before returning to half its regular rate for the following two months. The tax will be fully restored on April 1.

The federal Conservatives have had an ongoing social media campaign to “Scrap Carney’s Labour Day Gas Tax Hike”  for several weeks and renewed that campaign with a fresh round of posts on Wednesday morning.

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