Federal fuel excise tax will be suspended for months
April 15, 2026
Global Korean Post
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Global conflict and ongoing supply disruptions in the Middle East are driving up fuel prices around the world.
Yesterday, the Prime Minister, Mark Carney, announced that the government is temporarily suspending the federal Fuel Excise Tax on gasoline and diesel across Canada.
As of April 20, 2026, federal excise tax rates on gasoline, unleaded aviation gasoline, diesel fuel, and aviation fuel would be reduced to 0 cents per litre.
The federal excise tax currently applies at a rate of 10 cents per litre on gasoline and unleaded aviation gasoline, and 4 cents per litre on diesel fuel and aviation fuel, other than aviation gasoline.
The tax is typically payable by the manufacturer or wholesaler at delivery to a retailer and is embedded in the price of fuel, for example at the pump.
Heating oil is exempt from this tax and there is no federal excise tax on natural gas or propane. Provincial governments also collect their own gasoline and diesel taxes.
This temporary suspension would apply to gasoline, unleaded aviation gasoline, diesel fuel, and aviation fuel for which the tax became payable after April 19, 2026, such as gasoline or diesel fuel delivered by a manufacturer or producer to a purchaser, or sold by a licensed wholesaler or imported into Canada after that day.
This temporary suspension would remain in effect until and including September 7, 2026. On September 8, 2026, the federal excise tax would return to the full rate of 10 cents per litre for gasoline and unleaded aviation gasoline, and 4 cents per litre for diesel fuel and aviation fuel, other than aviation gasoline.
It is estimated this will provide over $2.4 billion in total tax relief that will ease the pressure of high fuel prices on Canadians in 2026.
by Global Korean Post
