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Fuel tax relief

Bill C-38 passes, extending federal fuel excise tax suspension to Jan. 31, 2027

The Canadian Fuel Affordability Act received Royal Assent on Thursday, with half-rate excise taxes to follow from Feb. 1 until March 31 before full rates return

90 Trust score
90/100 Well backed by other sources

An independent AI check searched the web for this story's main claims. The newsroom cannot change this score.

  • Confirmed elsewhere 4 of 5
  • Not found either way 1 of 5
  • Disputed elsewhere 0 of 5

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Source language: English
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Bill C-38 passes, extending federal fuel excise tax suspension to Jan. 31, 2027
Location
Ottawa
Ottawa, Ontario, Canada
Royal Assent for Bill C-38 keeps the federal fuel excise tax suspended through Jan. 31, 2027, with the government estimating $2.9 billion in additional relief.
Bill C-38 Cost of living Department of Finance Canada François-Philippe Champagne fuel excise tax

Bill C-38, the Canadian Fuel Affordability Act, received Royal Assent on Thursday, extending the temporary suspension of the federal fuel excise tax until Jan. 31, 2027, the Department of Finance Canada said in a news release.

The department said the extension is expected to deliver an additional $2.9 billion in relief, bringing total estimated fuel tax savings for Canadians to $5.3 billion in 2026-27. It said Canadians will continue to save more than $5 each time they fill a typical 50-litre tank of gasoline while the full relief remains in place.

The government said the measure responds to higher fuel costs tied to global instability and ongoing supply disruptions in the Middle East. It said the relief will help families as well as truckers and businesses in the food, agriculture, housing, construction, delivery and aviation sectors.

"By extending this tax relief, we are helping Canadians keep more of their hard-earned money, lowering transportation costs for businesses, and helping protect our economy from global disruptions. This is about making life more affordable and keeping our economy moving in a more uncertain world," said François-Philippe Champagne, minister of finance and national revenue.

The tax was first suspended on April 20, 2026. It applies to gasoline, leaded and unleaded aviation gasoline, diesel and aviation fuel. The department said gasoline prices fell by 11 cents per litre on the first day.

From Feb. 1, 2027, until March 31, 2027, rates will be restored at 50 per cent of their regular levels. That means 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.

On April 1, 2027, rates return to their full levels: 10 cents per litre for gasoline and unleaded aviation gasoline, 11 cents for leaded aviation gasoline, and 4 cents for diesel and aviation fuel.

The government also pointed to other affordability measures, including the Canada Groceries and Essentials Benefit, income tax cuts for 22 million Canadians, cancellation of the consumer carbon tax, and GST relief for first-time buyers of new homes.

Contains information licensed under the Open Government Licence – Canada.

How this story was checked

Trust score: 90 out of 100. An independent AI check searched the web for the story's main claims. The score comes only from what it found, so the newsroom cannot change it. How the score works

  1. Bill C-38, the Canadian Fuel Affordability Act, extends the suspension of the federal fuel excise tax until Jan. 31, 2027. (confirmed elsewhere)
    Parliament's bill page and the Finance Canada release both say the bill extends the suspension to Jan. 31, 2027. Those pages cover the bill's content, not its passage.
    C-38 (45-1) - LEGISinfo - Parliament of Canada
    Minister Champagne introduces legislation to extend the federal fuel excise tax relief for Canadians
  2. The extension is expected to deliver an additional $2.9 billion in relief, bringing total estimated savings to $5.3 billion in 2026-27. (confirmed elsewhere)
    The Finance Canada release gives the same $2.9 billion and $5.3 billion figures. These are government estimates.
    Minister Champagne introduces legislation to extend the federal fuel excise tax relief for Canadians
  3. From Feb. 1, 2027, until March 31, 2027, rates return at 50 per cent, then full rates (10 cents gasoline, 4 cents diesel) from April 1, 2027. (confirmed elsewhere)
    The bill text and summary set 50% rates for Feb. 1 to March 31, 2027. Finance Canada gives the full rates of 10 cents for gasoline, 11 cents for leaded aviation gasoline and 4 cents for diesel.
    C-38 (45-1) - LEGISinfo - Parliament of Canada
    Minister Champagne introduces legislation to extend the federal fuel excise tax relief for Canadians
  4. The tax was first suspended on April 20, 2026, and gasoline prices fell by 11 cents per litre on the first day. (confirmed elsewhere)
    The April 20 start date is confirmed by Reuters and Finance Canada. The 11-cent price drop is stated by the Finance Department itself, and I found no independent measurement of it.
    Canada to Temporarily Suspend Federal Fuel Tax on Diesel and Gasoline (Reuters)
    The Government of Canada extends the federal fuel excise tax relief
  5. Bill C-38 received Royal Assent on Thursday. (not found either way)
    I found the bill's introduction, second reading and text. I did not open any record that confirms Royal Assent or its date.

An editor checked 8 claims in this story against 1 source before it was published.

  • Claims checked: 8. Sources used: 1.
  • 8 could not be independently confirmed.

Sources the newsroom lists

  1. Legislation passes to extend the federal fuel excise tax relief for Canadians (News report or publication)

Independent web check on Oct. 29, 2026. Checked by our verification desk on Oct. 29, 2026. An editor approved the story before it was published. Our standards

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