Canada suspends fuel excise tax on gas—and aviation fuel

It's official: Effective this month, Prime Minister Mark Carney will suspension the federal fuel excise tax. 

Amid shifting global conditions and rising fuel prices driven by geopolitical instability, the federal government is focusing on strengthening domestic resilience while easing cost pressures for Canadians. 

Read more: New Quebec tool lets you track gas prices in real time across the province

As part of this approach, Prime Minister Mark Carney has announced a temporary suspension of the federal fuel excise tax on gasoline and diesel nationwide. 

What is the fuel excise tax in Canada?

Effective April 20, 2026, the measure is expected to lower pump prices by approximately 10 cents per litre for gasoline and 4 cents for diesel. 

The temporary relief also extends to aviation fuel.

The government says the move is intended to reduce transportation and operating costs across key sectors, including trucking, agriculture, food production, construction, housing, and delivery services. 

Lower input costs are expected to improve business margins and support hiring, investment, and export growth.

Officials describe the policy as part of a broader mandate to build a more self-reliant and competitive economy—one aimed at enhancing long-term economic security while providing immediate relief to households facing elevated living costs.

What is the duration of the fuel excise tax?

The measure is expected to remain in place until September 7, 2026.

For more information about Prime Minister Carney suspending the federal Fuel Excise Tax, click here. 

RECOMMENDED:
Full guide to the best things to do in Montreal