Prime Minister Carney Suspends Federal Fuel Taxes Until Labour Day To Lower Prices

Carney announced a temporary suspension of the federal fuel excise tax starting April 20 until Labour Day.

“Canada to suspend federal fuel taxes until early September in response to surge in gas prices Measure to remove 10 cents per liter of gasoline, 4 cents per liter of diesel, announced Prime Minister Mark Carney Berk Kutay Gokmen 14 April 2026•Update: 14 April 2026 ISTANBUL Canada will suspend federal fuel taxes until early September in response to a surge in gas prices, primarily due to the Iran war, Prime Minister Mark Carney announced on Tuesday”

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The suspension will remove up to 10 Canadian cents per liter on gasoline and four cents per liter on diesel.

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Carney framed the suspension as a responsible, temporary measure to offer real relief to Canadian families.

Conservative Leader Pierre Poilievre criticized the move as not good enough.

The average gas price in Canada was sitting at $1.73 per litre, down from $1.81 on Thursday.

The fuel tax suspension marks Carney's first move with a Liberal parliamentary majority.

Fuel prices have shot up about 27 percent since the Iran war began.

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Carney justified the cut as a balance between providing relief and managing federal finances.

The opposition Conservatives had pushed for a more extensive cut.

Carney also announced the government would invest in infrastructure to boost oil and gas production.

The announcement drew mixed reactions.

Poilievre accused the Liberals of going half way and for only half the time.

Patrick De Haan said the cut still doesn’t really tackle the issue that has driven up the price of oil.

Clean Energy Canada framed the cut as temporary and minor relief.

The move stops short of addressing provincial taxes.