Drivers across Canada could soon see some relief at the pump, as the federal government moves to temporarily eliminate its gas tax amid rising fuel costs.
Prime Minister Mark Carney announced Tuesday that the federal fuel excise tax on gasoline and diesel will be suspended from April 20th through September 7th, a move expected to lower prices by 10 cents per litre for gas and four cents per litre for diesel.
The decision comes as fuel prices have climbed sharply in recent weeks, with many stations around Greater Victoria still sitting at around 209.9 cents per litre despite minor fluctuations.
“We all know that because of the war with Iran, fuel prices have increased sharply around the world, including right here in Canada,” Carney said.
“So we’re taking more action to help build that bridge over short-term pressure.”
LIVE: Cutting fuel costs in Canada • EN DIRECT : Réduire les coûts de carburant au Canada https://t.co/4tgH71OyJy
— Mark Carney (@MarkJCarney) April 14, 2026
The federal excise tax, in place since 1995 for gasoline and 1987 for diesel, is a flat-rate tax applied to fuel sold for domestic use. Its temporary removal is expected to provide modest but immediate savings for Canadians.
According to federal estimates, a typical sedan owner could save about $4.90 per tank in excise tax, or roughly $5.63 when sales taxes are factored in.
The government confirmed it will suspend the excise tax on aviation fuel as well, following recent fuel surcharges introduced by major airlines.
A federal governement media release noted the move is intended to ease pressure not only for drivers but also for industries reliant on fuel, including transportation, agriculture and construction.
Gas prices remain a growing concern nationwide. According to GasBuddy, the national average hit 184 cents per litre earlier this month, the highest level seen so far this year.
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