As Canadians continue to navigate global economic uncertainty and rising costs, the Government of Canada is taking practical steps to help families, workers, and businesses manage everyday expenses.
On September 9, Prime Minister Mark Carney announced that the temporary suspension of the federal fuel excise tax will be extended until January 31, 2027. From February 1 to March 31, 2027, the federal fuel excise tax will remain at 50% of its regular rate.
The temporary suspension, first introduced in April, has been providing direct savings at the pump. It currently saves Canadians 10 cents per litre on gasoline and unleaded aviation gasoline, 11 cents per litre on leaded aviation gasoline, and 4 cents per litre on diesel and aviation fuel.
Extending this relief will help keep costs down for Canadians and businesses that rely on fuel every day, including those in transportation, agriculture, food, construction, housing, and delivery.
This measure comes on top of the Government of Canada's broader tariff-relief and affordability measures to support workers and businesses through a period of global economic uncertainty. The government has introduced targeted support to help Canadian businesses manage the impact of U.S. tariffs, strengthen domestic industries, diversify trade, and protect Canadian jobs.
The government is also taking action to help families keep more of their hard-earned money. This includes the new Canada Groceries and Essentials Benefit, tax cuts for 22 million Canadians, GST relief for first-time buyers of new homes, and the cancellation of the federal consumer carbon price.
Together, these measures are about providing meaningful support today while building a stronger and more resilient Canadian economy for the future.
The global forces affecting prices are beyond our control, but how we respond is within our control. By extending fuel tax relief, supporting Canadian workers and businesses, and making everyday essentials more affordable, we are helping Canadians through today's challenges while building a stronger Canada for tomorrow.