Conservatives urge Ottawa to extend fuel tax holiday

Aug 5, 2026 | 10:20 AM

OTTAWA — Canada’s Conservatives are calling on the federal government to extend the temporary excise tax holiday on gasoline and diesel beyond Labour Day, arguing the measure is needed to help Canadians cope with rising living costs and persistent inflation.

In a statement released Wednesday, Conservative Shadow Finance Minister Michael Chong said the suspension of the federal fuel excise tax, currently worth 10 cents per litre on gasoline and four cents per litre on diesel, should remain in place through the end of the year.

The current tax holiday is set to expire after Labour Day. Chong warned that fuel costs could increase once the measure ends, adding that higher energy prices continue to contribute to inflation in Canada.

The Conservatives pointed to a recent poll indicating that 63 per cent of Canadians oppose ending the fuel tax suspension. According to the figures cited by the party, opposition to reinstating the tax is strongest among seniors, women and Canadians between the ages of 35 and 54.

Beyond extending the tax holiday, the Conservatives are also calling on the government to remove the federal Goods and Services Tax from gasoline and diesel and eliminate the Clean Fuel Regulation. Chong said those measures could save drivers as much as 25 cents per litre and reduce costs for families struggling with everyday expenses.

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The party estimates the proposed changes would save a family of four about $500 over the remainder of the year and reduce the cost of a typical fuel fill-up by roughly $20.

Chong argued that lowering fuel costs would also help reduce prices on goods that depend on transportation, including food and building materials. He cited data from the Organization for Economic Co-operation and Development, or OECD, which has identified energy and food prices as major contributors to inflation in Canada.

The federal government has not yet indicated whether it plans to extend the fuel tax holiday beyond its current September deadline.

by CKPG News

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Conservatives urge Ottawa to extend fuel tax holiday

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