Canadian drivers and businesses will continue to receive a break on the federal fuel excise tax for several more months.
The Government of Canada announced Tuesday that it is extending the temporary suspension of the federal fuel excise tax on gasoline, diesel and aviation fuels.
The suspension will remain in effect until and including January 31, 2027.
The current suspension, introduced April 20, 2026, saves consumers 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.
Beginning February 1, 2027, the federal excise tax will return at 50 per cent of its regular rate through March 31.
That will mean a federal excise tax of five cents per litre on gasoline and unleaded aviation gasoline, 5.5 cents on leaded aviation gasoline, and two cents on diesel and aviation fuel.
The full federal excise tax rates will return April 1, 2027: 10 cents per litre on gasoline and unleaded aviation gasoline, 11 cents on leaded aviation gasoline, and four cents on diesel and aviation fuel.
The government estimates the extension will have an additional fiscal impact of approximately $2.9 billion, bringing total estimated fuel-tax relief for Canadians in 2026-27 to $5.3 billion.
The government says the measure is intended to help families and businesses manage higher costs, including businesses in sectors such as trucking, food, agriculture, construction, housing and delivery.
Finance Minister François-Philippe Champagne says the extension is intended to keep more money in the pockets of Canadians facing continued pressure from higher costs.
The announcement was made in Delta, British Columbia, at Aheer Transportation Group, a trucking and container logistics company. The company says the inclusion of diesel in the extension will provide relief for its drivers, owner-operators and customers.
The federal government has also pointed to other affordability measures, including personal income-tax reductions, the cancellation of the federal consumer carbon price, the Canada Groceries and Essentials Benefit and GST relief for first-time buyers of new homes.
The federal consumer carbon price was cancelled April 1, 2025.
