What changed
The Government of Canada announced that Bill C-38, the Canadian Fuel Affordability Act, has received Royal Assent. The legislation extends the temporary suspension of the federal fuel excise tax until January 31, 2027.
According to the official page, while the full relief remains in place, Canadians will continue to save more than $5 each time they fill a typical 50-litre tank of gasoline.
Beginning February 1, 2027, federal fuel excise tax rates will be restored at 50 per cent of their regular levels until March 31, 2027, as continued relief during the transition period.
The rates listed on the official page are:
- February 1, 2027 to March 31, 2027 inclusive: 5 cents per litre for gasoline and unleaded aviation gasoline, 5.5 cents per litre for leaded aviation gasoline, and 2 cents per litre for diesel fuel and aviation fuel.
- From April 1, 2027: rates return to full levels of 10 cents per litre for gasoline and unleaded aviation gasoline, 11 cents per litre for leaded aviation gasoline, and 4 cents per litre for diesel fuel and aviation fuel.
Introduced in spring 2026, the measure applies to gasoline, leaded and unleaded aviation gasoline, diesel, and aviation fuel. The official page states that the extension is expected to deliver an additional $2.9 billion in relief, increasing the total estimated fuel tax savings for Canadians to $5.3 billion in 2026-27.
What the official text says
> Bill C-38 extends the temporary suspension of the federal fuel excise tax until J anuary 31, 20 27. As a result, Canadians will continue to save more th an $ 5 every time they fill a typical 50-litre tank of gasoline while the full relief remains in place.
Who is affected
The official page states that the measure affects Canadians facing higher fuel costs, including families as they commute or run errands, as well as businesses moving food, building materials, and other essentials nationwide. It also says the extension will support truckers and businesses in the food, agriculture, housing, construction, delivery, and aviation sectors.
From when
The bill received Royal Assent on October 29, 2026. The relief continues until and including January 31, 2027. From February 1, 2027 to and including March 31, 2027, rates are at 50 per cent of regular levels. Full rates return on April 1, 2027.
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