News

Temporarily suspending the federal fuel excise tax

The Government of Canada intends to introduce legislative amendments to the Excise Tax Act to temporarily suspend the application of the federal fuel excise tax on gasoline, diesel fuel, and aviation fuels by setting their rates to 0 cents per litre, effective April 20, 2026 until Labour Day, September 7, 2026 (inclusive). This measure is intended to address fuel price pressures caused by global oil disruptions related to the Middle East conflict.

Affected products:

• Regular, Midgrade and Premium Gasoline
• Clear and Dyed Diesel
• Aviation Gasoline and Jet Fuel

Please note: furnace oil is unaffected as it has no excise tax.

For more information, consult the Excise Tax Act and the proposed amendments:

Excise Tax Act SCHEDULE I

Legislative Proposals Relating to the Excise Tax Act

ETSL82 Proposed temporary rate reductions of excise tax on certain types of fuel