Prime Minister Mark Carney announced Tuesday that the federal government will temporarily suspend the fuel excise tax on gasoline and diesel, a move aimed at easing rising costs for Canadians amid ongoing global energy disruptions.
The tax break, set to take effect April 20, will remain in place until Sept. 7, reducing prices at the pump by an estimated 10 cents per litre for gasoline and four cents per litre for diesel. The suspension will also apply to aviation fuels.
The measure comes as fuel prices continue to climb due to geopolitical instability and supply constraints, particularly in the Middle East. The federal government says the temporary tax relief is intended to provide immediate financial support while longer-term energy and economic strategies are developed.
“We’re focused on what we can control — building Canada strong for all,” Carney said in a statement, framing the decision as part of a broader effort to strengthen economic resilience and lower the cost of living.
Finance Minister François-Philippe Champagne said the tax suspension will deliver “timely, meaningful, and tangible relief” for households and businesses facing higher operating costs.
Officials say sectors such as trucking, agriculture, construction, and food distribution are expected to benefit from reduced fuel expenses, potentially easing price pressures across supply chains.
Energy and Natural Resources Minister Tim Hodgson added that the measure complements the government’s longer-term plans to expand domestic energy production, including investments in electricity, liquefied natural gas, and nuclear power.
The fuel tax pause is part of a broader affordability agenda that includes previously announced income tax cuts, housing-related GST relief for first-time buyers, and the elimination of the federal consumer carbon tax earlier in 2025.
The government says those combined measures are designed to support household finances while positioning Canada for greater energy independence and economic stability in an increasingly uncertain global environment.