What happened
On September 8, 2026, the Government of Canada announced an extension of the temporary suspension of the federal excise tax on gasoline, diesel, and aviation fuels. The suspension, originally introduced earlier in 2026, will be extended until January 31, 2027, followed by a 50% rate from February 1 to March 31, 2027, and full rates from April 1, 2027.
Official wording
> The Government of Canada extends the federal fuel excise tax relief on gasoline, diesel and aviation fuels for Canadians
Who is affected
This measure affects 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. During the suspension, the excise tax rates are 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 and aviation fuel. The extension keeps these rates in effect until January 31, 2027.
Effective date
The temporary suspension of the federal fuel excise tax originally took effect on April 20, 2026. The extension announced today prolongs the suspension until and including January 31, 2027. From February 1 to March 31, 2027, rates will be reduced to 50% of the full rates: 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 and aviation fuel. Effective April 1, 2027, rates will return to full levels.
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