The global landscape is rapidly changing. In response, Canada's new government is focused on what it can control - building a stronger, more independent, more resilient economy. The government is working to give Canadians greater security, certainty, and a lower cost of living.
Today, the Honourable Arielle Kayabaga, Deputy Leader of the Government in the House of Commons, on behalf of the Honourable Steven MacKinnon, Minister of Transport and Leader of the Government in the House of Commons, highlighted the government's actions to make life more affordable for Canadians, including the temporary suspension of the federal fuel excise tax and the rollout of the Canada Groceries and Essentials Benefit.
Global conflict and ongoing supply disruptions in the Middle East are driving up fuel prices around the world. To make Canada more energy secure and less reliant on external factors, the government is advancing major projects to realize Canada's full potential in clean and conventional energy. As it builds for the long term, the government is also providing immediate relief to bring down costs for Canadians right now - including cutting taxes for 22 million Canadians, cancelling the consumer carbon tax, and protecting and expanding vital social programs.
The Government of Canada is suspending the full amount of the federal fuel excise tax on gasoline and diesel until September 7, 2026. This is expected to reduce Canadians' bills at the gas station by 10 cents per litre on regular gasoline and 4 cents per litre on diesel. The government also temporarily suspended the federal fuel excise tax on aviation fuels to help reduce operating costs for truckers and businesses in the food, agriculture, housing, construction, and delivery sectors.
These measures build on other actions to lower costs for Canadians, including the new Canada Groceries and Essentials Benefit. Eligible Canadians will receive a one-time GST/HST credit top-up on June 5, 2026, as part of the transition to the Canada Groceries and Essentials Benefit, which will replace the GST/HST credit in July 2026. The top-up will be equal to 50% of the GST/HST credit for the 2025-26 benefit year. Starting July 3, 2026, the Canada Groceries and Essentials Benefit will provide higher quarterly payment amounts while keeping the eligibility and structure of the GST/HST credit, with quarterly payments increasing by 25% for the next five years.
Together, the one-time and quarterly Canada Groceries and Essentials Benefit payments will provide ongoing financial support to more than 12 million recipients.
Canada's new government was elected to build a more resilient economy - an economy that creates good careers, strengthens sovereignty, and helps deliver a lower cost of living. Through immediate affordability measures and longer-term economic action, the government is moving with speed and ambition to build a country where all Canadians have greater certainty, security, and prosperity.
