Minister Champagne introduces legislation to extend the federal fuel excise tax relief for Canadians

Minister Champagne introduces legislation to extend the federal fuel excise tax relief for Canadians

September 22, 2026 – Ottawa, Ontario – Department of Finance Canada

In a rapidly changing world, Canada’s government is focused on what we can control: making life more affordable for Canadians, strengthening our economic resilience, and building a stronger and more independent country.

Yesterday, the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, introduced Bill C-38, the Canadian Fuel Affordability Act. The legislation responds to higher fuel costs caused by global instability and ongoing supply disruptions in the Middle East, which are putting pressure on energy markets around the world.

These higher costs are felt across the economy, from Canadians driving to work or running errands to businesses transporting food, building materials, and other essential goods across the country. Extending the relief will help lower everyday costs for Canadians while supporting truckers and businesses in the food, agriculture, housing, construction, delivery, and aviation sectors.

In response to these pressures, Bill C-38 will extend the temporary suspension of the federal fuel excise tax until January 31, 2027. For Canadians, that means continuing to save more than $5 every time they fill a typical 50-litre tank of gasoline while the full relief remains in place. Then, the regular rates will be reduced by 50% until March 31, 2027.

First introduced in spring 2026 to provide immediate relief at the pump, the measure will continue to apply to gasoline, aviation gasoline (leaded and unleaded), diesel fuel, and aviation fuel. The extension is expected to provide an additional $2.9 billion in fuel tax relief, bringing total estimated tax relief for Canadians to $5.3 billion in 2026-27.