Canadian drivers could face higher gas prices after September 7
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Drivers across Canada could see higher fuel prices beginning September 8, 2026, when the temporary suspension of the federal fuel excise tax is scheduled to end, unless Ottawa extends the measure before the deadline.
The federal government suspended the tax on April 20 to ease cost-of-living pressures, reducing the tax burden by 10 cents per litre on gasoline and four cents per litre on diesel. Ottawa estimated the measure would provide more than $2.4 billion in tax relief in 2026.
Under the current schedule, the full federal excise tax returns September 8. For a 60-litre gasoline fill-up, the 10-cent levy represents about $6 per tank if the full increase is passed through to consumers at the pump.
The actual retail increase may be smaller because pump prices are also affected by crude oil, refining costs, provincial taxes and competition. Fuel-price analyst Dan McTeague says Canada's transition to cheaper winter-grade gasoline after mid-September could lower prices by around eight to nine cents per litre in some regions, potentially offsetting much of the tax increase shortly afterward.
