Canada’s fuel tax break extends into 2027, ending April 1

Canadian drivers will continue receiving federal fuel excise tax relief into 2027. Ruby Sahota, secretary of state for combating crime, announced that the tax will remain suspended until Jan. 31, 2027.

The government suspended the tax on April 20, 2026 in response to high fuel prices, saving drivers 10 cents per litre of gasoline and four cents per litre of diesel. The measure had been scheduled to expire Monday, Sept. 7.

From Feb. 1 through March 31, 2027, reduced federal excise tax rates will apply. Drivers are expected to pay up to five cents per litre on gasoline and two cents per litre on diesel. Full rates of 10 cents per litre on gasoline and four cents per litre on diesel return April 1, 2027.

The federal government says the temporary suspension is expected to save Canadians a total of $5.3 billion from April 2026 through March 2027. As of Tuesday, the Canadian Automobile Association listed the national average gasoline price at 179.9 cents per litre, up from 171.2 cents the previous week.

Finance and National Revenue Minister François-Philippe Champagne said the extension is intended to provide relief to households and businesses facing higher costs.