Canada Suspends Fuel Taxes Until Labour Day

Ottawa's temporary suspension of federal excise taxes on gasoline and diesel took effect Monday, offering Canadians modest relief at the pump amid soaring energy prices triggered by escalating conflict in the Middle East.

The pause, announced last week by Prime Minister Mark Carney, applies until Labour Day and is expected to reduce costs by 10 cents per litre for regular gasoline and 4 cents per litre for diesel. Government officials described the measure as a targeted response to tame rising fuel expenses, with an estimated fiscal impact of 2.4 billion dollars. According to the Canadian Automobile Association's gas price tracker, the national average stood at 1.74 dollars per litre in recent days, marking an increase of more than 40 cents compared to the same period a year earlier.

The surge in prices stems from U.S. President Donald Trump's decision to launch military actions against Iran in coordination with Israel. Tehran responded by restricting shipments through the Strait of Hormuz, a critical chokepoint for global oil transport, while Washington imposed additional constraints on maritime traffic in the region. These developments have disrupted supply chains and driven...