Federal fuel excise tax relief will be extended for five months
Sept 04, 2026
Global Korean Post
–
As Canadians continue to face economic uncertainty and rising costs, affordability remains top of mind for families and businesses across the country. To help Canadians facing rising fuel costs, the Government of Canada introduced a temporary suspension of the federal fuel excise tax on gasoline, aviation gasoline (leaded and unleaded), diesel fuel, and other aviation fuel earlier this year.
On September 2, Minister of Finance and National Revenue, announced that the government is extending the temporary suspension of the federal fuel excise tax until January 31, 2027, and applying 50% of the regular excise tax rate from February 1 through March 31, 2027. This will bring down everyday costs for Canadians, including truckers and businesses in the food, agriculture, housing, construction, and delivery sectors.
When the temporary suspension of the federal fuel excise tax was first introduced on April 20, 2026, gasoline prices declined by 11 cents per litre on the first day of implementation, delivering immediate relief to consumers.
The estimated additional fiscal impact of the extension of the suspension of the federal fuel excise tax is about $2.9 billion. This will mean $5.3 billion in estimated total tax relief for Canadians in 2026-27.
Edited by Global Korean Post
