The Canadian government has extended the suspension of the federal tax on gasoline and diesel, which was originally scheduled to end after Labour Day on September 7, amid continued fuel price increases and ongoing geopolitical tensions.
Under the extension, gasoline will continue to benefit from a 10-cent-per-litre tax suspension, while the federal tax on diesel will remain reduced by 4 cents per litre. The measure is expected to remain in place until early 2027.
For drivers, this means filling a 50-litre gasoline tank could save approximately C$5 compared with the price they would pay if the tax were reinstated.
The extension comes as the average gasoline price across Canada has risen to approximately 172.9 cents per litre, according to data from the Canadian Automobile Association (CAA).
The Ontario government welcomed the decision, while the Conservative opposition called for the tax suspension to be extended through the end of the year and urged additional measures to reduce fuel prices.
The move is intended to prevent the expected increase in fuel prices following Labour Day, while allowing Canadian drivers to continue benefiting from the savings based on their fuel consumption.
