Minister of Finance and National Revenue the Hon François-Philippe Champagne announced today the federal government will be extending the temporary suspension of the federal fuel excise tax on gasoline, diesel fuel, and aviation fuels.
The announcement took place in Ottawa and was attended by the Canadian Trucking Alliance (CTA). Finance Minister Champagne confirmed the temporary suspension, originally set to expire on September 7, 2026, has been extended until January 31, 2027.
Furthermore, starting February 1, 2027 following the end of the suspension, the tax will be applied at 50 percent of the regular rate through March 31, 2027. These relief measures continue the Government of Canada’s efforts to address uncertainty in the supply chains.
Fuel is the second leading cost for fleets after labour, and stability in fuel prices is a key tool in the fight against inflation and keeping costs of goods down for Canadians.
The measure also allows improvements in cash flow management. A trucking operation requires significant upfront capital. Freeing up capital that would otherwise be tied up in fuel taxes allows carriers to reinvest in other areas of their operations, which is critical in today’s business environment, says CTA
