Canada Starts Temporary Suspension of Federal Gasoline and Diesel Tax Until September 7

Canada’s federal government will begin suspending the federal excise tax on gasoline and diesel on Monday, April 20, 2026, in a temporary move aimed at easing pressure on households and key sectors facing higher energy, transportation, and living costs.

The suspension will remain in effect through September 7, 2026, reducing the tax rate to zero cents per litre during that period before the full federal rates return on September 8. Ottawa says the measure is expected to lower pump prices by about 10 cents per litre for gasoline and 4 cents per litre for diesel.

The government argues the temporary tax break could also reduce operating pressures across transportation, trucking, agriculture, food, construction, and delivery, sectors where fuel costs quickly feed into the prices consumers pay. Official estimates put the total tax relief at more than C$2.4 billion in 2026.

The measure also extends to certain aviation fuels. Finance Canada said the suspension applies to fuel for which the tax becomes payable after April 19, meaning the full effect at the pump may appear progressively as newly supplied fuel reaches the market. The government has linked the move to ongoing global energy market disruptions and the cost pressures they continue to create.