The world is changing rapidly. The United States is imposing new tariffs on Canada, designed to hurt and divide us. At the same time, conflicts in Europe and the Middle East are driving up prices around the world. In response, Canada's government is focused on what we can control: building a stronger, more independent, and more affordable country.
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, diesel fuel, aviation gasoline (leaded and unleaded), and other aviation fuel earlier this year.
Today, Tim Louis, Parliamentary Secretary to the President of the King's Privy Council for Canada and Minister responsible for Canada-United States (U.S.) Trade, Intergovernmental Affairs, Internal Trade and One Canadian Economy and Member of Parliament for Kitchener-Conestoga participated in an event marking the announcement that the government is extending the temporary suspension of the federal fuel excise tax until January 31, 2027, and applying 50% of the regular excise tax rate from February 1 through March 31, 2027. This will bring down everyday costs for Canadians, including truckers and businesses in the food, agriculture, housing, construction, and delivery sectors. It will also help municipalities, such as the Township of Woolwich where municipal trucks, snowploughs, and heavy vehicles are essential to keeping roads safe and delivering reliable local services. Reducing the cost of fuelling these vehicles helps the Township manage pressure on its operating budget and make the best use of municipal resources, costs that are ultimately supported by local property taxpayers. The measure also provides important relief across Woolwich's rural economy, where farmers, agricultural businesses, contractors and transportation companies rely heavily on diesel-powered vehicles and equipment.
On April 20, 2026, the federal fuel excise tax was temporarily suspended, saving Canadians 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.
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.
We cannot control the global forces driving up prices, but we can control how we respond. We are cutting taxes to help Canadians manage everyday expenses while building a stronger, more independent economy. That is how we build Canada strong for all.
