The Government of Canada has announced a temporary suspension of the federal Fuel Excise Tax on gasoline and diesel to help reduce costs for Canadians and support affordability during a period of global economic uncertainty.

Starting April 20, 2026, and continuing until September 7, 2026, the federal Fuel Excise Tax will be fully suspended on gasoline and diesel across the country. This is expected to lower prices by approximately 10 cents per litre for gasoline and 4 cents per litre for diesel. The suspension will also apply temporarily to aviation fuels.

The Government of Canada says the measure comes in response to ongoing global supply disruptions and geopolitical instability that continue to put upward pressure on energy prices. By providing targeted, time-limited relief at the pump, the government aims to help ease costs for families while supporting businesses facing higher operating expenses.

Lower fuel costs are expected to benefit a wide range of sectors, including transportation, agriculture, construction, housing, and food distribution. Reduced input costs for businesses are also expected to support job creation, investment, and competitiveness across the economy.

At the same time, the government notes it is continuing to advance long-term efforts to strengthen Canada’s energy security and economic resilience, including major investments in electricity, LNG, nuclear energy, and other infrastructure projects aimed at ensuring reliable and affordable energy for Canadians.

This temporary tax suspension is part of a broader approach to reduce the cost of living while building a stronger, more self-reliant economy that supports Canadians now and into the future.

For more information, see today’s news release