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 fuels. The suspension, originally set to expire in September 2026, will now continue until January 31, 2027. 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.
Previously, the federal fuel excise tax was suspended on April 20, 2026, saving Canadians 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. The extension is estimated to provide a total of $5.3 billion in tax relief for Canadians in 2026-27, with an additional fiscal impact of about $2.9 billion.
Official Statement
> The Government of Canada extends the federal fuel excise tax relief on gasoline, diesel, and aviation fuels for Canadians - Canada.ca
> Today, Jennifer McKelvie, Parliamentary Secretary to the Minister of Housing and Infrastructure, participated in an event marking the announcement that the government is extending the temporary suspension of the federal fuel excise tax until January 31, 2027, and applying 50% of the regular excise tax rate from February 1 through March 31, 2027.
Who Is Affected
This measure affects all Canadian residents, particularly drivers, truckers, and businesses in the food, agriculture, housing, construction, and delivery sectors. By lowering fuel costs, it helps reduce everyday expenses.
Effective Date
The extension was announced on September 8, 2026, and continues from the end of the original suspension period. The timeline is as follows:
- April 20, 2026 to January 31, 2027: Federal fuel excise tax suspended.
- February 1 to March 31, 2027: 50% of the regular rate applies (5 cents per litre for gasoline and unleaded aviation gasoline, 5.5 cents for leaded aviation gasoline, and 2 cents for diesel and aviation fuel).
- April 1, 2027 onward: Full rates resume (10 cents per litre for gasoline and unleaded aviation gasoline, 11 cents for leaded aviation gasoline, and 4 cents for diesel and aviation fuel).
The official page does not specify a separate effective date beyond these details.
Send this page