Canada Suspends Fuel Excise Tax Until September

OTTAWA, April 14, 2026 – Prime Minister Mark Carney announced Tuesday that the federal government will suspend the excise fuel tax on gasoline, diesel and aviation fuels starting April 20 and lasting until Labour Day on September 7, in response to soaring energy prices triggered by the ongoing conflict between the United States and Iran.

The temporary measure is expected to save Canadians 10 cents per litre on regular gasoline and four cents per litre on diesel, according to government officials. It will also apply to aviation fuels, providing additional relief for the transportation sector. Carney, speaking to reporters on Parliament Hill, described the suspension as a "responsible, temporary measure" that offers "real relief" to families facing rising everyday expenses. A government statement noted the policy will lower costs for truckers and businesses reliant on heavy transportation, helping to ease pressures amid global supply disruptions.

The decision follows Carney's recent success in securing a parliamentary majority through three byelections on Monday, bolstering the Liberal government's position. Officials estimate the suspension will cost the federal treasury 2.4...