Overview
- Finance Minister François‑Philippe Champagne announced the extension on Wednesday, Sept. 2, 2026, keeping the federal excise tax suspended through Jan. 31, 2027 and directing a staged reinstatement at half rate for Feb. 1–Mar. 31, 2027 before full rates return on Apr. 1, 2027.
- Canadians will continue to save 10 cents per litre on gasoline and 4 cents per litre on diesel while the pause is in effect, with aviation fuels covered by the same schedule.
- The government estimates the extension adds about $2.9 billion in foregone revenue for a total of roughly $5.3 billion in 2026–27 relief and says the measure responds to sustained global energy price volatility and recent U.S. trade measures.
- Political reactions split: Conservatives urged deeper cuts including removing GST and other federal fuel levies, NDP leaders demanded a windfall tax on oil companies, and provincial officials called for longer or permanent relief.
- Industry groups such as the Canadian Energy Marketers Association warned the pause shifts embedded tax costs onto wholesalers and retailers who bought fuel with the tax included and are calling for transition rebates or credits to avoid losses when inventory is repriced.