What Happened
On September 8, 2026, the Government of Canada announced an extension of the temporary suspension of the federal fuel excise tax on gasoline, diesel, and aviation fuel. The suspension, which began on April 20, 2026, will now continue until January 31, 2027, inclusive. From February 1 to March 31, 2027, the tax will be applied at 50% of the regular rate, and full rates will resume on April 1, 2027.
Specific rate changes are as follows:
- Gasoline and unleaded aviation gasoline: 10 cents per litre saved during the suspension; 5 cents per litre from February 1 to March 31, 2027; 10 cents per litre from April 1, 2027.
- Leaded aviation gasoline: 11 cents per litre saved during the suspension; 5.5 cents per litre from February 1 to March 31, 2027; 11 cents per litre from April 1, 2027.
- Diesel and aviation fuel: 4 cents per litre saved during the suspension; 2 cents per litre from February 1 to March 31, 2027; 4 cents per litre from April 1, 2027.
This measure is part of broader federal efforts to address affordability amid US tariffs and global price increases.
Official Statement
> The extension will keep the federal excise tax rates suspended until and including January 31, 2027. From February 1, 2027, until March 31, 2027, federal fuel excise tax rates would be 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. Effective April 1, 2027, federal fuel excise tax rates would return to their 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.
Who Is Affected
All consumers and businesses in Canada who purchase gasoline, diesel, or aviation fuel, including truckers and businesses in the food, agriculture, housing, construction, and delivery sectors, as well as airlines and passengers using aviation fuel.
When It Takes Effect
The extension was announced on September 8, 2026, but the suspension has been in effect since April 20, 2026. The rate changes occur as follows: suspension ends on January 31, 2027; half rates apply from February 1 to March 31, 2027; full rates resume on April 1, 2027.
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