Federal Fuel Excise Tax Temporarily Suspended to Lower Costs for Canadians

HAMILTON, ON, April 23, 2026 /CNW/ - The global landscape is rapidly changing. In response, Canada's new government is focused on what we can control – building a stronger, more independent, more resilient economy. We're building an economy where Canadians are empowered with greater security, certainty, and a lower cost of living.

Global conflict and ongoing supply disruptions in the Middle East are driving up fuel prices around the world. To make Canada more energy secure and less reliant on external factors, our government is advancing major projects to realise Canada's full potential in clean and conventional energy. We're building big in electricity, LNG, and nuclear to provide all Canadians with clean, reliable, and affordable power. As we build for the long term, we are providing immediate relief to bring down costs for Canadians right now – including cutting taxes for 22 million Canadians, cancelling the consumer carbon tax, and protecting and expanding vital social programs.

In that spirit, the Honourable John Zerucelli, Secretary of State (Labour), took part in an event marking the announcement that the government is temporarily suspending the federal fuel excise tax on gasoline and diesel across Canada. Starting April 20, 2026, Canada's new government will suspend the full amount of the tax on gasoline and diesel until September 7, 2026. This is expected to reduce costs for Canadians at the gas station by 10 cents per litre on regular gasoline and 4 cents on diesel. The government is also temporarily suspending the federal fuel excise tax on aviation fuels.

Cutting the tax on gasoline and diesel until Labour Day is a responsible measure that will reduce operating costs for truckers and businesses in the food, agriculture, housing, construction, and delivery sectors. With lower costs and greater financial strength, businesses can hire more workers, confidently build, and export more products to global markets.

Secretary Zerucelli also highlighted that eligible Canadians will receive a one-time GST/HST credit top-up on June 5, 2026. The payment is part of the transition to the Canada Groceries and Essentials Benefit which will replace the GST/HST credit in July 2026. This new benefit will provide a family of four up to $1,890 this year, and more than $1,400 a year for the next four years; and a single person up to $950 this year, and more than $700 a year for the next four years. The benefit will provide increased financial support for more than 12 million Canadians, helping offset elevated grocery bills that have risen faster than the inflation rate due to the global landscape.

Canada's new government was elected to build a more resilient economy – an economy that creates good careers, strengthens our sovereignty, and empowers all Canadians with a lower cost of living. We're moving with speed and ambition to build a country where all Canadians have greater certainty, security, and prosperity.

Quotes

"We know rising costs are weighing on family budgets, which is why we're focused on making life more affordable by suspending the federal fuel tax and launching the new Groceries and Essentials Benefit. These concrete steps take the pressure off today and keep more money in your pocket as we build a stronger economy for the future."
– The Honourable John Zerucelli, Secretary of State (Labour)

"This government made a commitment to make life more affordable for Canadians--and that's exactly what we are focused on delivering by acting on what we can control.

Throughout the summer and until Labour Day, constituents in my riding and across Canada will benefit from 10 cents off per litre at the pump--helping families save as they visit loved ones, head out on road trips, enjoy picnics, and make the most of the season."
– Aslam Rana, Member of Parliament (Hamilton Centre, Ontario)

"The war in the Middle East caused a historic increase in the cost of oil. By cutting the excise tax and the carbon tax to save 28 cents per litre on gas, we are taking action to help Canadians afford essentials."
– John-Paul Danko, Member of Parliament (Hamilton West--Ancaster--Dundas, Ontario)

"Hamilton Mountain residents are getting some real relief from the high cost of gas and groceries. Our government has suspended collection of the federal fuel tax and is now delivering the Groceries and Essentials Benefit to those who most need the help. These are tangible measures and real dollars back in your pocket."
– Lisa Hepfner, Member of Parliament (Hamilton Mountain, Ontario)

"It is with privilege to welcome the Honorable Secretary of State (Labour) John Zerucelli to Hamilton. Suspending the fuel excise tax is a practical step to provide immediate relief for families and businesses facing rising costs. Measures like this help make everyday life more affordable while supporting economic stability in communities across Canada."
– Anthony Rizzuto, Owner, Blue Line Transportation

Quick facts

Today's announcement builds on major initiatives to lower costs for Canadians, including:

• Cutting taxes for 22 million middle-class Canadians by lowering the first marginal personal income tax rate from 15% to 14% as of July 1, 2025, providing tax relief of up to $420 a year per person, or up to $840 a year for two-income families.
• Eliminating the Goods and Services Tax (GST) for first-time homebuyers on new homes up to $1 million and reducing the GST for first-time home buyers on new homes between $1 million and $1.5 million, to immediately make the goal of home ownership a reality for more Canadians, especially young families.

• Cancelling the federal consumer carbon tax effective April 1, 2025, directly helping Canadians save money at the pump. The government also removed the requirement for provinces and territories to have a consumer-facing carbon price as of that date. This has helped reduce gas prices in most provinces and territories by up to 18 cents per litre in comparison to 2024-25, lowering headline inflation.
  Budget 2025 also outlined concrete action to ensure Canadians receive the support they deserve, including targeted measures to strengthen food security and household affordability:

• Making the National School Food Program permanent, providing school meals for up to 400,000 children each year, saving participating families with two children in school an estimated $800 annually on groceries.

• Introducing Automatic Federal Benefits, starting in the 2026 tax year, to ensure up to 5.5 million low-income Canadians automatically receive the benefits and credits they qualify for by the 2028 tax year, including the Canada Groceries and Essentials Benefit and the Canada Child Benefit.

• Lowering costs and strengthening competition in essential services, including ambitious pro-competition measures in the telecom and financial sectors to reduce prices, make it easier for Canadians to switch providers, and lower banking and service fees.

• More information on Budget 2025 measures to tackle affordability is available here.
  Related products

• Temporarily suspending the federal fuel excise tax

• Canada Groceries and Essentials Benefit one-time top-up payment to make groceries and other essentials more affordable is coming June 5

• Secretary of State McLean highlights Canada Groceries and Essentials Benefit top-up coming June 5
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SOURCE Employment and Social Development Canada

Contacts: For media enquiries, please contact: Liane Kotler, Director of Communications, Office of the Secretary of State (Labour), [email protected]; Media Relations Office, Employment and Social Development Canada, 819-994-5559, [email protected]

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Employment and Social Development Canada

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