Prime Minister Mark Carney is moving to give Canadians a temporary break at the pumps, freezing the federal excise tax on gasoline and diesel until Labour Day.
The measure, which takes effect Monday, pauses about 10 cents a litre in federal tax on gasoline and roughly four cents on diesel. Carney’s government is framing the move as a targeted response to fuel prices that have climbed above two dollars a litre in parts of the country, driven higher by global market turmoil and the conflict involving Iran.
Officials describe the freeze as temporary, not a full‑scale fuel‑tax holiday. Other federal charges on fuel, including existing climate‑related measures, remain in place despite calls from opposition parties to suspend them as well.
The government argues the move will offer some short‑term relief for drivers, trucking companies and businesses facing higher transportation costs, while avoiding a more expensive, open‑ended tax cut. Critics, however, are likely to question whether the limited freeze goes far enough to offset the impact of sustained high prices.
The suspension is scheduled to end after Labour Day, though ministers have left the door open to revisiting the policy if global energy markets remain volatile later in the year.
