Pump the brakes: Canada reportedly extending gas tax cut into 2027
Canadians could be getting more relief at the pumps after all.
The federal government is expected to extend its temporary suspension of the federal fuel excise tax on gasoline and diesel until Jan. 31, 2027, according to multiple news reports.
The tax break was originally set to expire on Sept. 7 but as CTV first reported, Finance Minister François-Philippe Champagne is expected to announce the extension in Ottawa later today.
If confirmed, the extension would mean Canadians continue to get a break of 10 cents per litre on gasoline and four cents per litre on diesel.
As of Wednesday morning, the average cost of gas in Canada was 172.9 cents per litre, according to the Canadian Automobile Association.
The federal fuel excise tax on gasoline has been set at 10 cents per litre since 1995, while the federal diesel excise tax has been four cents per litre since 1987.
Shortly after his Liberal government secured a majority, Prime Minister Mark Carney first announced the pause on April 14, and it officially took effect on April 20.
At the time, Carney said fuel prices had “increased sharply” in Canada because of the war with Iran, and that the government was taking action to help ease the pressure on Canadians at the pumps.
The measure was estimated to provide more than $2.4 billion in tax relief this year.
If the reported extension goes ahead, the federal fuel excise tax would remain at zero through Jan. 31.
According to the Canadian Taxpayers Federation, sedan drivers will continue to save about $6 every time they fill up, while minivan and pick-up truck drivers save around $7 and $10, respectively.