Uploaded September 2026 | Updated September 2026, 2 weeks ago
Canada will extend the federal gas tax cut ahead of imposing countertariffs on U.S. goods.
The gas tax break, introduced in April in the government’s spring fiscal update to counter soaring oil prices, was set to expire Sept. 7 but will be extended to Jan. 31, 2027. It will then be halved until March 31, and phased out completely on April 1.
The tax break saves consumers 10 cents per litre on gas and four cents on diesel, according to the federal government.
Finance Minister François-Philippe Champagne announced the extension Wednesday, just days before Ottawa's countertariffs are set to take effect on a range of U.S. goods. Analysts say the levies, slated to begin Sept. 8, will eventually raise prices on those and other goods in Canada.
The Finance Department estimates that the gas tax extension will cost the government about $2.9-billion in lost revenues, bringing the total estimated cost of the tax reduction to about $5.3-billion since April, according to federal figures.
When asked about the large price tag, Champagne said the conflicts in Ukraine and the Middle East have raised oil prices, which has in turn generated more federal tax revenue and given Ottawa the fiscal room to afford the tax break. #canada #cdnpoli
Canada will extend the federal gas tax cut ahead of imposing countertariffs on U.S. goods.
The gas tax break, introduced in April in the government’s spring fiscal update to counter soaring oil prices, was set to expire Sept. 7 but will be extended to Jan. 31, 2027. It will then be halved until March 31, and phased out completely on April 1.
The tax break saves consumers 10 cents per litre on gas and four cents on diesel, according to the federal government.
Finance Minister François-Philippe Champagne announced the extension Wednesday, just days before Ottawa's countertariffs are set to take effect on a range of U.S. goods. Analysts say the levies, slated to begin Sept. 8, will eventually raise prices on those and other goods in Canada.
The Finance Department estimates that the gas tax extension will cost the government about $2.9-billion in lost revenues, bringing the total estimated cost of the tax reduction to about $5.3-billion since April, according to federal figures.
When asked about the large price tag, Champagne said the conflicts in Ukraine and the Middle East have raised oil prices, which has in turn generated more federal tax revenue and given Ottawa the fiscal room to afford the tax break. #canada #cdnpoli
