Canada Moves to Extend Gas and Diesel Tax Relief Until January 2027

Canada’s Finance Minister François-Philippe Champagne has introduced Bill C-38 in Parliament to extend the federal excise tax relief on gasoline and diesel until January 31, 2027.

Under the proposed legislation, Canadians will continue to receive the full tax relief of 10 cents per litre on gasoline and 4 cents per litre on diesel until the end of January. According to Champagne, the measure will save drivers about $5 on every 50-litre tank of fuel.

From February 1 to March 31, 2027, the tax relief will be reduced by half, with the federal fuel excise tax returning to its full rate on April 1, 2027.

The government says the extension is aimed at helping Canadian families, truckers and the agricultural sector cope with rising fuel costs caused by global tensions and the ongoing crisis in the Middle East.

Overall, the measures are expected to provide Canadians with approximately $5.3 billion in fuel tax relief.