Prime Minister Mark Carney announced a temporary suspension of Canada’s federal fuel excise tax on gasoline and diesel from April 20 to September 7, 2026, as the Liberal government moves to lower costs after securing a parliamentary majority.
Prime Minister Mark Carney has announced a temporary suspension of the federal Fuel Excise Tax on gasoline, diesel, and aviation fuels, framing the move as immediate relief for Canadians facing higher energy costs. The measure will take effect on April 20 and remain in place until September 7, 2026. According to the government, it is expected to lower pump prices by about 10 cents per liter for regular gasoline and 4 cents per liter for diesel.
The announcement comes as global conflict and supply disruptions in the Middle East continue to push fuel prices higher. Ottawa says the temporary tax suspension is intended to ease pressure on households and businesses while the government advances longer-term plans to strengthen Canada’s energy security through investment in electricity, LNG, and nuclear power.
The government argues the tax cut will also help lower operating costs for sectors including trucking, agriculture, construction, food, and delivery services, potentially giving businesses more room to hire, build, and export.
The announcement also comes one day after Carney’s Liberal Party secured a parliamentary majority, winning three special elections and bringing the party to 174 seats in the 343-seat House of Commons. That shift means the government will no longer need opposition support to pass legislation, giving Carney a stronger mandate as he pushes his economic agenda.
In a statement, Carney said the government is focused on “what we can control” in a volatile global environment, describing the tax suspension as part of a broader effort to build a stronger, more resilient, and more independent Canadian economy.
