Federal gas tax cut extended until January 2027
The Canadian federal government has extended its excise tax cut on gasoline and diesel until January 2027 to help citizens manage rising living costs. The decision follows pressure from provincial leaders and opposition parties amid global fuel price volatility.
Why it matters
This policy directly impacts household budgets and reflects the political tension between federal and provincial governments regarding inflation and energy taxation.
The federal government has extended its excise tax cut on gasoline and diesel until Jan. 31, 2027, Finance Minister François-Philippe Champagne announced on Wednesday.
CityNews had learned earlier in the day that the federal government would be extending the gas tax break but Champagne confirmed it during a press conference in Ottawa on Wednesday afternoon.
“It’s about making life more affordable. … Many Canadians are concerned by the price of rent, the price of food [and] the price of gas,” the finance minister said.
He also said from Feb. 1 to March 31, 2027, the fuel excise tax will return to half its regular rate and then fully resume on April 1.
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