In an announcement by Prime Minister Mark Carney on Tuesday morning, there will be some relief in store for those who fuel up their vehicles.
As of Monday, April 20th, the Fuel Excise Tax will be suspended until Labour Day, September 7th, 2026. That works out to be 10 cents per litre on gasoline and 4 cents per litre on diesel fuel. Aviation fuel is also included in the tax relief for domestic flights. The cost of waving the tax for the four month period will cost the federal government roughly $2.4 billion
The reduction in taxes are in response to the unrest in the Middle East. The price reduction in the Drumheller Valley will see fuel prices drop from 169.9 to at least 159.9 depending on the volatility of oil prices on the world market.
MP for Battle River-Crowfoot and Official Leader of the Opposition, Pierre Poilievre, has been calling for the government to eliminate the fuel excise tax, along with the GST charged on fuel and the clean fuel charge until the end of 2026. When asked if the measures introduced by the government on Tuesday were acting on an idea from the opposition, Prime Minister Mark Carney said “no” but followed up by saying that he is “open to ideas from anyone”.
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