Today, the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, tabled Bill C-38 the Canadian Fuel Affordability Act which will extend the temporary suspension of the federal fuel excise tax until January 31, 2027, and apply 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.
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.
Key Messages
As Canadians continue to face economic uncertainty and rising costs, we know that affordability remains a top concern for many across our country.
The conflict in the Middle East has been driving up fuel prices around the world, adding pressure to household budgets, and that is why our government introduced a temporary suspension of the federal fuel excise tax, earlier this year.
As the conflict in the Middle East continues, these pressures on household budgets have not abated, and that is why we are extending the suspension of the fuel excise tax until the end of January and only applying 50% of the regular rate through March.
This will help bring down everyday costs for Canadians both directly, when they are at the pump, and indirectly, by bringing down operating costs for truckers and businesses.
Canada’s government is focused on what we can control – building a stronger, more affordable, and more independent country.
