Canada to extend federal gas tax holiday into the new year

newsSep 2, 202615355

The federal government will extend the temporary pause of the federal fuel excise tax on gasoline and diesel until Jan. 31, 2027, CTV News has learned. Finance Minister François-Philippe Champagne is expected to announce the extension in Ottawa, with the measure phased out gradually in spring so the tax returns over time. The suspension, first announced in April amid higher global oil prices tied to the U.S.-Iran war, reduces regular gas by 10 cents per litre and diesel by four cents per litre. The Canadian Automobile Association reported an average gas price of 172.9 cents per litre the morning of the report. Conservative Leader Pierre Poilievre urged Prime Minister Mark Carney to go further by removing all taxes on gas until at least Canada Day 2027 and to drop GST and carbon levies, and Ontario Premier Doug Ford had also called for an extension through year end. The extension keeps the 10-cent relief at the pump through January and signals a gradual reinstatement of the excise tax beginning in spring 2027.

Avi Lewis

@avilewis.ca

1/ People are getting gouged at the pumps, but another costly handout of public money to oil and gas companies is no solution. Even after the Carney government’s $2.4 billion giveaway, gas prices continue to soar. In July, they were up more than 25% compared to last year. www.cbc.ca/news/politic...

15144d ago

Avi Lewis99

2/ Instead of more corporate welfare, it’s time for a windfall tax on the big oil giants that are set to make $100 billion in profits this year because of Trump’s illegal war in Iran.

Harleydadd3

We need regulation of the oil & gas (and many others, such as grocery) industries. These companies will always put profits over people and the only way to help Canadians is to regulate their profits. Or maybe nationalize them.

westcoastconnect.bsky.social2

What also pisses me off is a large portion of fuel comes from Washington state and the refinery in Burnaby is owned by Texans. So much for BC's energy security.

msmedea.bsky.social1

How is this a give away to oil and gas companies? Because will people might spend more? You're really stretching the definition of a handout here. This will help everyday people, but I am not surprised you've twisted this policy into a "handout" for O&G and corporations. NDP has terrible messaging

Clean Energy Canada

@cleanenergycanada.org

🇨🇦💰 Canada is extending its pause on the federal gas tax, which will save drivers a bit of money. But the tax holiday won't amount to anything close to what switching to an EV would, according to Clean Energy Canada's calculations. #cdnpoli

4044d ago

Aster Vérité1

Buy an EV... this thread tells you how attractive the decision is economically. When you do, you'll owe me a beer.

WE CANNOT BUILD BANANAS IN AMERICA1

Hydropower in Canada could power everything. Cities, industries and EVs.

Cheryl in Nova Scotia 🇨🇦🍁🍁

@minibubbly.bsky.social

The Federal Liberals will extend gas and diesel tax holiday into 2027, sources say #Canada First announced in April, holiday was set to end on Labour Day www.cbc.ca/news/politic...

2645d ago

Joan Skelton - Nasty, formerly nice Canadian5

Pretty sure that was the plan all along if the US war against Iran continued. Too bad provinces that apply taxes at the pump wouldn't also lower their portions.

CDN Delta 🇨🇦 🇺🇦3

I think I just heard Polievre's head explode.

Quoting this

Safe Kjipuktuk9

this is such poor policy which benefits people who can afford it, also those who buy larger vehicles they don't need Instead they could maintain the tax, and increase key benefits, rebates and tax credits

Nick P4

Affordability is a bad frame and folks who spent three years pushing it into the centre of public discourse on all issues have no room to complain when the government does objectively bad policy like this to stay out of the frame’s hazard zone.

Jim Stanford

@jimbostanford.bsky.social

The federal gas tax holiday is a 10-cent band-aid on a much bigger problem: repeat cycles of global oil shocks, inflation, interest hikes, recession. Like any band-aid, it hurts to rip it off: so Ottawa leaves it on for 5 more months. But consumers paid $3b extra in 2Q for gas anyway. /2

2544d ago

Poppet 🇨🇦Small acts of solidarity, repeated millions of times.

@northernpoppet.bsky.social

An important reminder Ontario has done little to aid its citizens struggling with affordability. Ford continues to lobby the Federal govt to reduce the gas excise tax. HOWEVER - the province has its own .09 cent gas tax. But has done nothing. Less talk more doing www.cbc.ca/news/politic...

1944d ago

A Sleeping Tiger 🐯 and Hettie the elderly rescue kitty 🇨🇦🍁1

I’m sure he’ll happily take credit for today’s announcement tho’…👇🏼🤷‍♀️

Oliver Moore

@oliver-moore.bsky.social

It seems self-evident that the longer a gas-tax holiday is extended the more politically difficult it will be ever to end it

2145d ago

IISD Energy

@energy.iisd.org

📣 Canada’s government is extending its gas tax holiday into 2027, but the policy is not delivering the affordability relief Canadians need. With Canadians facing high energy costs, government support is critical—but it should be targeted to the households that need it most. 🧵1/5

Quote from Nichole Dusyk, Lead, Canada Energy Transition at IISD reading: "Canada's gas tax holiday is the wrong answer for the right question. Trade uncertainty and high energy prices are driving up costs, but the billions subsidizing fossil fuels would be better spent supporting low-income households and helping Canadians get off fossil fuels."

1244d ago

Patrick De Haan

@gasbuddyguy.bsky.social

Canada is extending their excise tax holiday to Jan 2027- that doesn't magically stop market forces and oil prices from rising- it simply means that 10c/L gas price relief and 4c/L diesel price relief will continue. Again, it doesn't overpower other market forces.

1645d ago

TinkieGurl 🇨🇦 #ForeverCanadian

@tinkiegurl.bsky.social

The difference we see in gas prices pales beside the billions these companies are raking in. "Lewis is suggesting that the government should instead impose a windfall tax on oil companies that have seen revenues increase because of the U.S. war in Iran. government." www.cbc.ca/news/politic...

945d ago

Quoting this

Club Saanich4

This is all well in good for Canadian consumers but without a plan to make up this revenue somewhere else it means public services will suffer. If ever there was a time for a windfall tax on the industry... #cdnpoli

Bon Hanson

@bonhanson.bsky.social

The pause will be extended to January 31, 2027. 🇨🇦 www.ctvnews.ca/politics/art...

744d ago

Sean Marshall

@seanyyz.bsky.social

Another gas-tax holiday, the day after our premier moves closer to overriding our city council in removing cycling infrastructure. A War On Who, exactly?

845d ago

Visible Cricket 🇨🇦🇮🇪🛶🥾🎿🥌

@visiblecricket.bsky.social

The pause, which was first announced in April to address volatile oil prices amid the U.S.-Iran war, was set to expire on Labour Day. www.ctvnews.ca/politics/art...

745d ago

Unofficial CTV News Mirror

@ctvnews-mirror.bsky.social

Carney government to extend gas tax holiday into the new year, sources say

545d ago

National Newswatch

@nationalnewswatch.com

Ottawa to announce extension of gas tax holiday beyond Labour Day nationalnewswatch.com/2026/09/02/o...

545d ago

Flingjore

@flingjore.com

Canada extends its excise tax cut on gasoline and diesel through Jan. 31, 2027. Finance Minister François-Philippe Champagne’s extension maintains a 10-cent-per-liter discount on gas as the ongoing Iran war and Strait of Hormuz disruptions continue inflating global fuel

444d ago

3 sources

cp24.comCarney government to extend gas tax holiday into the new year, sources say ctvnews.caCarney government to extend gas tax holiday into the new year, sources say cbc.caLiberals will extend gas and diesel tax holiday into 2027, sources say | CBC News

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Canada to extend federal gas tax holiday into the new year

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