OTTAWA - The federal government will extend the temporary pause of the federal fuel excise tax on gas and diesel into the new year, CTV News has learned. Finance Minister François-Philippe Champagne is expected to make the announcement in Ottawa on Wednesday. Sources tell CTV News the pause will be extended until Jan. 31, 2027, with the measure gradually lifting to ease the tax coming back into effect in the spring. The pause, which was first announced in April to address volatile oil prices amid the U.S.-Iran war, was set to expire on Labour Day. Back in April, the federal government said the tax suspension would reduce the cost of gas by 10 cents per litre on regular gas, and four cents on diesel. According to the Canadian Automobile Association (CAA), as of Wednesday morning, the average cost of gas in Canada is 172.9 cents per litre. Conservative Leader Pierre Poilievre has been calling on Prime Minister Mark Carney to “remove all taxes on gas until at least Canada Day 2027.” In a new letter to Carney on Tuesday, Poilievre said, “Canadians are paying more than they can bear.” “That means not only suspending the fuel excise tax, but also removing the GST on gas and diesel and permanently eliminating the Clean Energy Regulation and Industrial Carbon Tax,” Poilievre goes on to say. Last month, Ontario Premier Doug Ford also called on Carney to extend the federal gas excise tax holiday until at least the end of the year as a way to help the impact of U.S. President Donald Trump’s latest tariff threats. This is a breaking news story. More to come.
