Canada Extends Gas Tax Suspension to January 2027

The federal government is set to extend its suspension of the excise tax on gasoline and diesel until the end of January, according to sources familiar with the matter. Finance Minister François-Philippe Champagne is scheduled to announce the extension at a press conference in Ottawa on Wednesday, September 2, 2026. The pause, originally implemented in April to combat soaring fuel prices, was scheduled to expire after Labour Day, on September 7 or 8, according to different reports. The extension comes as the conflict between the United States and Iran continues to disrupt global energy markets. The war, which began with U.S. and Israeli attacks on Iran, has led to the effective closure of the Strait of Hormuz, a critical chokepoint for a fifth of the world's energy exports. The U.S. administration initially stated the military campaign would last several weeks, but the conflict has now persisted for more than six months, sustaining upward pressure on fuel costs. The national average price for gasoline is currently about $1.73 per litre, which is 34 cents higher than a year ago, according to the Canadian Automobile Association.