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Canada’s Department of Finance announced on 2 September that the temporary federal excise-tax suspension on gasoline, aviation gasoline, diesel and aviation fuel would continue through 31 January 2027. The measure began on 20 April 2026.
From 1 February to 31 March 2027, the tax is set to return at half its regular rate: 5 cents per litre for gasoline and unleaded aviation gasoline, 5.5 cents for leaded aviation gasoline, and 2 cents for diesel and aviation fuel. The government estimates the extension’s additional fiscal impact at C$2.9 billion and total 2026–27 relief at C$5.3 billion.