Federal fuel-tax suspension extended through January 2027
Half of the regular federal excise-tax rate is then planned for February and March before full rates return in April.
Canada is extending the temporary suspension of federal excise taxes on gasoline, diesel and aviation fuels through January 31, 2027, the federal government announced September 8.
Half of the regular rate is planned from February 1 through March 31. Full rates are scheduled to return April 1, 2027.
The suspension began April 20, 2026. The federal rates affected are 10 cents per litre for gasoline and unleaded aviation gasoline, 11 cents for leaded aviation gasoline, and 4 cents for diesel and aviation fuel.
For February and March, the announced rates are 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. Ottawa estimates the extension’s additional fiscal cost at about $2.9 billion.
Source: Government of Canada fuel-tax announcement — September 8, 2026; checked September 9.
Featured image: A Petro-Canada fuel station. File photo; prices and location are not identified. Photo: Jim Luo / Unsplash.
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