OTTAWA - The federal government will extend the temporary pause of the federal fuel excise tax on gas and diesel into the new year, CTV News has learned.
Finance Minister François-Philippe Champagne is expected to make the announcement in Ottawa on Wednesday.
Sources tell CTV News the pause will be extended until Jan. 31, 2027, with the measure gradually lifting to ease the tax coming back into effect in the spring.
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.
Back in April, the federal government said the tax suspension would reduce the cost of gas by 10 cents per litre on regular gas, and four cents on diesel.
According to the Canadian Automobile Association (CAA), as of Wednesday morning, the average cost of gas in Canada is 172.9 cents per litre.
Conservative Leader Pierre Poilievre has been calling on Prime Minister Mark Carney to “remove all taxes on gas until at least Canada Day 2027.”
In a statement on Wednesday, Poilievre claimed victory for the policy change, saying “Conservatives won another battle for Canadian families,” but called it a “modest extension” that “will not be enough for Canadians.”
Poilievre also reiterated his push for the federal government to remove the GST on gas and diesel and permanently eliminate the Clean Energy Regulation and industrial carbon tax.
Ontario Premier Doug Ford, meanwhile, called on Carney last month to extend the federal gas excise tax holiday until at least the end of the year as a way to help the impact of U.S. President Donald Trump’s latest tariff threats.
NDP Leader Avi Lewis also commented on the extension Wednesday, saying the federal government should instead implement a windfall tax on oil companies and use the profits to “give Canadians real relief at gas stations and grocery checkouts.”
