The suspension of Ottawa’s fuel excise tax would be extended until the end of January 2027 under proposed new legislation, Finance Minister Francois-Phillipe Champagne said on Tuesday.
Fuel prices have remained elevated since March, with the start of the U.S. war on Iran and the closure of the Strait of Hormuz, including high gas prices in Canada.
In response, Prime Minister Mark Carney in April announced a temporary suspension of the federal fuel excise tax from April until Labour Day.
This removed up to $0.10 per liter on gasoline and $0.04 per liter on diesel fuel, Carney had said at the time.
With fuel prices once again climbing because of the renewed fighting in the Middle East, legislation tabled in the House of Commons on Tuesday will extend that pause into the new year.
“What I like about the measure is it’s very direct. It’s immediate. It’s very simple. It applies across the country. And it’s going to also help to reduce the pressure on the price of gas and the price of food,” Champagne told reporters on Tuesday.
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When asked if the federal government would consider extending the tax break further to April of next year, he did not rule out the possibility.
“No one has a crystal ball on what the world is going to look like in January 2027,” he said.
Average gas prices across Canada were at $1.82 per litre, hovering close to the monthly high of $1.82 per litre. This is up around 10 cents per litre compared to the same time a month ago, when it was at $1.72.
According to GasBuddy, Ontario saw the highest increase in gas prices on Tuesday ($1.77 per litre, up 2.8 cents), followed by British Columbia $2 per litre, up 2.3 cents).
The price of Brent crude – the international benchmark for the price of oil – rose again on Tuesday, past US$100 per barrel.
Escalation of conflict in Yemen between the Houthis and Saudi Arabia last week raised oil prices again after Saudi Arabia was forced to stop operations at its East-West pipeline due to the conflict.
All fuel taxes should be killed – forever.
Carny should freeze the price of gas through legislation.
“Looking for chemistry? You might find it here… join profile
as David Best said with a grin, as carney’s balls bounced off his chin …………………………..
Maybe Carney can use this time to deal with the tariffs like he promised to do nearly two years ago.
David Best
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Yet another policy ripped off of Polievre.
@David Best,
If everyone you do not see the name of is stupid, or the village idiot – what does that make you?
Why should I even believe your name is David Best, and more importantly, how is it even relevant to any question?
Anonymous the village idiot thru and thru. Amazing.
Anonymous the village idiot….there you are! Sharing your foolish comments with everyone. All the time, and everday…
This may make minimal savings for a person that drives a lot or a courier company but for the people that don’t drive much on walk it will mean nothing and zero help as food prices keep rising.
This was only brought in to win votes and make people feel like the government is doing something to help out but in reality is has done zilch and inflation just keeps on climbing with no end in site due to a government lost in their ideology.
Soon interests rate will rise again and all the government will come up with will be more taxpayer benefits like the grocery benefit!
David Best is Best at what he does. bobbing, sucking and swallowing
Anonymous is a village idiot
We already get tax breaks. It will be our grandchildren paying for the Liberal/NDP spending. Live high off the hog then….. we are covered. (sarcasm)
Can we all just be rational and admit that there are too many taxes that are failing to achieve their goals?
Carney has offered tax breaks to spur business which is full admission that our high taxes are killing investment opportunities and growth.
It’s kinda undeniable.
THANK YOU Pierre Poilievre for getting us a cut on this tax !!!
You are a true Canadian, unlike the talk and tax Liberal Party
Gee, thanks. How about a break on all the other taxes the LPC have levied on Canadians? 10 cents/litre is the least of our concerns. “Maybe I’ll go to the movies…by myself.”
Maybe the big oil comanys could settle for a little less of their huge profits
Another great idea by PP!