The Carney government is extending its 10-cent-per-litre federal gas tax holiday into 2027 following months of Conservative calls for Ottawa to keep taxes off fuel as Canadians face soaring prices at the pump.
Finance Minister François-Philippe Champagne announced Wednesday that the federal fuel excise tax will remain fully suspended until Jan. 31, 2027.
The tax will return at half its normal rate — five cents per litre on gasoline — for February and March before returning to the full 10-cent rate on April 1.
“This is the most impactful measure we can put together,” Champagne told reporters. “Reducing the federal fuel excise tax is a direct measure. It’s applying across the country from coast to coast.”
Asked why the suspension was not being made permanent, Champagne said the government was “quite happy to do our part.”
“We’ve done a lot,” he said when pressed on Conservative calls to permanently eliminate the tax. “That’s my message to Canadians.”
