Extension will continue to save Canadians 10 cents per litre on gasoline and 4 cents per litre on diesel
As Canadians continue to face economic uncertainty and rising costs, affordability remains top of mind for families and businesses across the country. To help Canadians facing rising fuel costs, the Government of Canada introduced a temporary suspension of the federal fuel excise tax on gasoline, aviation gasoline (leaded and unleaded), diesel fuel, and other aviation fuel earlier this year.
Today, in Lloydminster, the Honourable Buckley Belanger, Secretary of State for Rural Development, highlighted the Government of Canada's extension of the temporary suspension of the federal fuel excise tax until January 31, 2027, followed by a 50% reduction in the regular excise tax rates from February 1 through March 31, 2027.
The measure will continue to lower fuel and transportation costs for Canadians, including truckers and businesses in the food, agriculture, housing, construction and delivery sectors. Canadians will continue to save 10 cents per litre on gasoline and unleaded aviation gasoline, 11 cents per litre on leaded aviation gasoline, and 4 cents per litre on diesel and aviation fuel.
When the temporary suspension first took effect on April 20, 2026, gasoline prices declined by 11 cents per litre on the first day of implementation, delivering immediate relief to consumers. The estimated additional fiscal impact of extending the suspension is approximately $2.9 billion, bringing the estimated total tax relief for Canadians in 2026-27 to $5.3 billion.
As Canada continues to build a stronger, more resilient and more independent economy, the government is taking practical steps to reduce costs today while investing in long-term prosperity. Extending fuel tax relief is one of the measures helping families, workers and businesses navigate global economic uncertainty.
The government is also taking broader action to make life more affordable, including through the Canada Groceries and Essentials Benefit, cutting income taxes for 22 million Canadians, the cancellation of the consumer carbon tax, and GST relief for first-time buyers of new homes. Together, these measures are helping Canadians keep more of their hard-earned money.
