Conservative Motion Seeking Additional Diesel Tax Relief Defeated in Commons

A Conservative motion calling for additional federal tax relief on diesel has been defeated in the House of Commons.

The motion called for all federal taxes on diesel to be fully suspended until July 1, 2027. It also sought tax incentives to increase domestic diesel production in Canada.

The federal government has already extended a temporary suspension of the federal fuel excise tax on diesel until Jan. 31, 2027. The Conservatives argued that further reducing diesel costs could help Canadians save at gas stations and grocery stores because diesel is an important part of the transportation and supply chain.

The motion was supported by Conservative MPs but opposed by the Liberals, Bloc Québécois and federal NDP. It therefore failed to pass in the House.

The vote leaves the federal government's existing diesel tax relief measures in place. No additional tax suspension proposed in the Conservative motion was approved.