Prime Minister Carney suspends the federal fuel excise tax on gasoline and diesel to lower costs for Canadians

The global landscape is rapidly changing. In response, Canada’s new government is focused on what we can control – building a stronger, more independent, more resilient economy. We’re building an economy where Canadians are empowered with greater security, certainty, and a lower cost of living.

Global conflict and ongoing supply disruptions in the Middle East are driving up fuel prices around the world. To make Canada more energy secure and less reliant on external factors, our government is advancing major projects to realise Canada’s full potential in clean and conventional energy. We’re building big in electricity, LNG, and nuclear to provide all Canadians with clean, reliable, and affordable power. As we build for the long term, we are providing immediate relief to bring down costs for Canadians right now – including cutting taxes for 22 million Canadians, cancelling the consumer carbon tax, and protecting and expanding vital social programs.

Today, the Prime Minister, Mark Carney, announced that the government is temporarily suspending the federal fuel excise tax on gasoline and diesel across Canada. Starting April 20, 2026, Canada’s new government will suspend the full amount of the tax on gasoline and diesel until September 7, 2026. This is expected to reduce Canadians’ bills at the gas station by 10 cents per litre on regular gasoline and 4 cents on diesel. The government is also temporarily suspending the federal fuel excise tax on aviation fuels.

Cutting the tax on gasoline and diesel until Labour Day is a responsible measure that will reduce operating costs for truckers and businesses in the food, agriculture, housing, construction, and delivery sectors. With lower costs and greater financial strength, businesses can hire more workers, confidently build, and export more products to global markets.

Canada’s new government was elected to build a more resilient economy – an economy that creates good careers, strengthens our sovereignty, and empowers all Canadians with a lower cost of living. We’re moving with speed and ambition to build a country where all Canadians have greater certainty, security, and prosperity.