April 14, 2026 — The federal government has announced a temporary suspension of the fuel excise tax on gasoline and diesel, a move aimed at easing pressure on Canadians grappling with rising fuel costs amid global energy disruptions.
Prime Minister Mark Carney confirmed the measure on Tuesday, stating that the tax relief will take effect on April 20 and remain in place until September 7, 2026. The suspension is expected to lower prices at the pump by approximately 10 cents per litre for gasoline and 4 cents per litre for diesel. The tax pause will also apply to aviation fuels.
The decision comes as geopolitical tensions and supply chain challenges particularly in the Middle East continue to drive volatility in global energy markets. Federal officials say the measure is part of a broader strategy to provide immediate financial relief while advancing long-term energy security goals.
“We’re building a stronger, more resilient, and more independent Canadian economy. As we build, we’re cutting your taxes, reducing the costs of your homes, and providing you relief at the pump. We cannot control what other nations do. We’re focused on what we can control – building Canada strong for all,” Carney said in a statement.
According to the government, the temporary tax suspension is also expected to reduce operating costs for key sectors such as transportation, agriculture, construction, and food distribution, where fuel expenses play a significant role in overall pricing.
Finance Minister François-Philippe Champagne described the move as a targeted response to current economic pressures.
“To support Canadians through the current global energy market disruptions, our government is delivering timely, meaningful, and tangible relief for Canadians at a time when they need it. By lowering fuel costs at the pump on gasoline and diesel, we’re taking a concrete step to support Canadians through these challenges, as we position them for long-term success – by building the strongest economy in the G7,” Champagne said.
François-Philippe Champagne, Minister of Finance and National Revenue
Energy and Natural Resources Minister Tim Hodgson emphasized the dual focus on affordability and long-term energy development.
“While we build more affordable, sovereign energy at home for the grid of tomorrow, we are providing relief for the affordability challenges caused by events abroad today. Being an energy superpower means delivering energy Canadians can afford, whether they are paying household bills or filling up their car,” Hodgson noted.
The fuel tax suspension builds on a series of affordability measures introduced over the past year, including income tax reductions, housing-related tax changes for first-time buyers, and the removal of the federal consumer carbon tax in 2025. Additional supports, such as grocery benefits and expanded social programs, have also been rolled out to address the rising cost of living.
Officials say the latest measure is designed as a short-term intervention, with broader investments in electricity, liquefied natural gas (LNG), and nuclear energy forming part of a longer-term plan to strengthen Canada’s energy independence and economic resilience.
While the impact on federal revenues has not been detailed, the government maintains that the temporary tax relief is a necessary step to stabilize household and business expenses during a period of global uncertainty.
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