Federal Fuel Tax Suspension Ends Today After Four Months of Relief

End of Gas Price Relief

Starting on April 20, 2026, a temporary suspension of the federal fuel excise tax on gasoline, diesel, and aviation fuels was in place until and including September 7, 2026, and was expected to reduce Canadians' bills at the gas station by up to 10 cents per litre on regular gasoline and up to 4 cents on diesel. That relief period ends today.

To help ease the pressure from higher fuel prices, the government announced this temporary suspension of the federal fuel excise tax across Canada. This relief also reduced operating costs for many businesses. The measure was introduced to cushion households and companies from volatility in global oil prices during the first half of 2026.

What Changes Tomorrow

Beginning September 8, 2026, the federal excise tax on fuel will return to its standard rate. If the increase in oil prices is temporary, inflation is expected to return to the 2 per cent target by the end of the year. Motorists should anticipate a noticeable increase at the pump, and shipping and transportation costs may begin to rise again.

For newcomers and expats: If you drive in Canada, budget for increased fuel costs starting tomorrow. Commercial renters and consumers receiving shipping or delivery services may also see modest price adjustments as businesses account for higher fuel surcharges. This is a good reminder to compare fuel prices across different regions and service stations, and to consider fuel-efficient vehicles or public transit alternatives if available.

Sources

• Canada.ca — Economic and fiscal overview | Spring Economic Update 2026