Canada Extends Fuel Tax Relief Into 2027

Canada's federal fuel excise tax pause was extended through Jan. 31, 2027, giving drivers continued pump relief beyond its original Sept. 7 end date.
The suspension first began April 20, 2026, after soaring fuel prices, cutting gasoline costs by 10 cents per litre and diesel by 4 cents.
From Feb. 1 to March 31, 2027, a half-rate federal fuel tax will apply, with gasoline up to 5 cents and diesel 2 cents.
After the temporary relief ends April 1, 2027, full federal fuel tax levels return: 10 cents per litre on gasoline, 4 cents on diesel.
Government expects the tax pause to save Canadians $5.3B from Early-Q2 2026 through Late-Q1 2027, while supporting household and business affordability nationwide.