Secretary of State Belanger highlights extension of federal fuel tax relief

Extension will continue to save Canadians 10 cents per litre on gasoline and 4 cents per litre on diesel

Extension will continue to save Canadians 10 cents per litre on gasoline and 4 cents per litre on diesel

September 9, 2026 – Lloydminster, Saskatchewan

As Canadians continue to face economic uncertainty and rising costs, affordability remains top of mind for families and businesses across the country. To help Canadians facing rising fuel costs, the Government of Canada introduced a temporary suspension of the federal fuel excise tax on gasoline, aviation gasoline (leaded and unleaded), diesel fuel, and other aviation fuel earlier this year.

Today, in Lloydminster, the Honourable Buckley Belanger, Secretary of State for Rural Development, highlighted the Government of Canada’s extension of the temporary suspension of the federal fuel excise tax until January 31, 2027, followed by a 50% reduction in the regular excise tax rates from February 1 through March 31, 2027.

The measure will continue to lower fuel and transportation costs for Canadians, including truckers and businesses in the food, agriculture, housing, construction and delivery sectors. Canadians will continue to save 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.

When the temporary suspension first took effect on April 20, 2026, gasoline prices declined by 11 cents per litre on the first day of implementation, delivering immediate relief to consumers. The estimated additional fiscal impact of extending the suspension is approximately $2.9 billion, bringing the estimated total tax relief for Canadians in 2026–27 to $5.3 billion.