Liberals will extend gas and diesel tax holiday into 2027, sources say

04-Sep-2026

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Finance Minister François-Philippe Champagne is expected to announce on Wednesday that the Liberal government will extend the federal excise tax holiday on gasoline and diesel until early 2027, according to sources that spoke with Radio-Canada.

Champagne will make the announcement in Ottawa as part of the government's efforts to help Canadian families and businesses deal with the rising cost of living. 

In April, Carney temporarily removed the 10-cent federal excise tax on a litre of gas and four cents per litre on diesel until Sept. 7, which is Labour Day.

At the time, Carney said the move, which was expected to cost an estimated $2.4 billion, would act as a bridge to help get Canadians over "short-term pressures" caused by a spike in the global price of oil since the U.S. began its war with Iran.