By Prime Minister of Canada - YouTube: https://www.youtube.com/watch?v=Gd3MmNeewd4 – View/save archived versions on archive.org, CC BY 4.0, https://commons.wikimedia.org/w/index.php?curid=185956573
UPDATE: An earlier version of this story stated that the excise tax on petroleum was coming in the summer. Harvard Media News apologizes for this error. The excise tax will be removed from petroleum and diesel on April 20, 2026. We apologize for any confusion this may have caused.
OTTAWA — Prime Minister Mark Carney says the federal government will temporarily suspend the excise tax on gasoline, diesel and aviation fuel this summer, a move aimed at lowering prices at the pump and easing cost pressures on households and businesses.
Carney said the measure, set to run from April 20 to Sept. 7, is expected to reduce gasoline prices by about 10 cents per litre and diesel by roughly four cents per litre.
The prime minister pointed to rising global fuel costs linked to conflict in the Middle East as the reason for the move, saying the government is responding to short-term affordability pressures while working toward longer-term energy security.
Officials say the tax pause is expected to cost about $2.4 billion, and begins on April 20, 2026.
The government says the temporary suspension is also intended to lower operating costs for industries such as transportation, agriculture, construction and food distribution, sectors that are particularly sensitive to fuel prices.
Finance Minister François-Philippe Champagne said the measure is designed to provide timely relief as Canadians face higher costs tied to global energy market disruptions.
Energy and Natural Resources Minister Tim Hodgson said the move reflects a broader effort to balance short-term affordability with longer-term plans to strengthen Canada’s energy independence and reliability.
Carney described the measure as temporary and timed for the summer months, when Canadians typically travel more by road and air.
The announcement comes after Conservative Leader Pierre Poilievre called on the government earlier this month to suspend federal levies on fuel for a longer period. Carney said the decision was not influenced by that proposal, adding the government remains open to ideas from a range of sources.
The tax relief was announced hours after the Liberals secured a majority government following recent byelection wins.
Carney said the government will focus on addressing immediate concerns, including affordability, while continuing to pursue broader economic measures aimed at strengthening resilience and reducing costs for Canadians.
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