Liberals plan to suspend federal fuel excise tax until Labour Day

Gas prices have surged in Canada and worldwide in recent months as the conflict in the Middle East has constrained global oil shipments.

While average gasoline prices are down roughly 10 cents from the national peak a week ago, CAA’s gas price tracker shows an average cost of $1.73 per litre at pumps across the country on Tuesday — more than 40 cents higher than a year ago.

A media statement about the federal plan said it will also reduce prices for truckers and other businesses with heavy transportation costs. Carney said the excise tax will be waived for jet fuel domestically as well, as airliners contend with ballooning energy costs.

Carney’s announcement stops short of the Conservative party’s call for the excise tax and GST on gas and diesel to be waived for the rest of the year, and for a permanent end to the clean fuel standard and industrial carbon tax.

Conservative Leader Pierre Poilievre argued in the House of Commons on Tuesday that the Liberals would not have taken any action if they had not been pushed by the Official Opposition.

But he accused the federal government of going only “half way” and for “only half the time.”

Poilievre said his proposal would cut the cost of a litre of gasoline by 25 cents.

Carney told reporters that waiving the excise tax for a little over four months will cost the federal government roughly $2.4 billion, while the Conservatives put the price tag for their proposal at around $5 billion.

The Liberals are largely paying for the excise tax cut by “recycling” the revenues from the boost Canada’s economy typically receives from higher gas prices, Carney said.

Poilievre argued Ottawa ought to go further and use the higher tax revenue to offer Canadians a steeper break at the pumps.

“That money should go back into the pockets of consumers, not into the coffers of government,” he said Tuesday.

The prime minister defended the excise tax cut as a more responsible approach to managing federal finances while supporting Canadians and the broader economy.

“We didn’t just say, ‘Get rid of all taxes on gasoline and let’s spend $9 billion as if we’re not in government,’ which is actually what you do say when you’re not in government,” Carney said.

“But when you are in government, you have to choose, you have to balance, and this is the balance we’ve struck.”

U.S. President Donald Trump said Monday the American military had begun a blockade of Iranian ports as part of an effort to force Tehran to open the Strait of Hormuz.

This report by The Canadian Press was first published April 14, 2026.

— with files from The Associated Press

Craig Lord, The Canadian Press

by The Canadian Press

Liberals plan to suspend federal fuel excise tax until Labour Day

More Local News