Carney temporarily suspending federal fuel excise tax on gas, diesel and aviation fuel

15-Apr-2026

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A day after sweeping three byelections in Ontario and Quebec that gave him a majority in the House of Commons, Prime Minister Mark Carney has announced that he is temporarily removing the federal excise tax on gas and diesel.

The move means that the cost of gas will drop by ten cents on a litre of gasoline and four cents per litre of diesel starting Monday and lasting until Labour Day.

The fuel tax holiday, which Carney said would also see the four cent per litre excise tax removed on aviation fuel, is expected to cost an estimated $2.4 billion.

"We all know that because of the war with Iran fuel prices have increased sharply around the world including right here in Canada," Carney said in Ottawa on April 14. 

In a statement, the government said the move "is a responsible measure that will reduce operating costs for truckers and businesses in the food, agriculture, housing, construction, and delivery sectors."