PM Mark Carney announces suspension of federal fuel excise tax untill Labour Day

Prime Minister Mark Carney on Tuesday announced a significant relief measure for Canadians struggling with the rising cost of living. Starting next week and continuing until Labour Day, the federal government will temporarily suspend the federal fuel excise tax. This move is designed to provide immediate financial breathing room for households and businesses across the country.

Speaking in Ottawa, Mark Carney detailed that the suspension will result in a price drop of $0.10 per litre for gasoline and $0.04 per litre for diesel.

Additionally, the excise tax on aviation fuel is also being removed to support the transportation and travel sectors. The Prime Minister noted that when combined with the previous elimination of the consumer carbon tax, the government’s cumulative actions have reduced gasoline prices by a total of up to $0.28 per litre.

This relief program is expected to cost the federal treasury approximately $2.4 billion. The decision comes in direct response to the escalating conflict between the United States and Iran, which has caused global oil prices to spike. Shipments through the Strait of Hormuz have been largely stalled, creating a supply crunch. The tax holiday is scheduled to take effect on April 20 and will remain in place until September 7.

The announcement follows recent pressure from Conservative Leader Pierre Poilievre, who had called on the federal government to scrap the fuel excise tax. Poilievre has argued that removing the "clean fuel standard" and GST surcharges alongside the excise tax would save consumers even more—roughly 25 cents per litre.

In closing, the Prime Minister acknowledged the financial strain currently felt by the public. "We know that Canadians are feeling the pressure of everyday expenses right now," Mark Carney said. "They need a boost today and a bridge to the future."