Ontario Premier Doug Ford has formally requested Prime Minister Mark Carney to prolong the federal gas excise tax exemption until the year’s end. Ford emphasized the need to maintain the tax relief amidst escalating challenges faced by Canadians such as housing costs, grocery prices, and daily household expenses.
Earlier in April, Carney had temporarily lifted the 10-cent federal excise tax on gasoline and four cents per liter on diesel until Labor Day on Sept. 7. This measure, estimated to cost around $2.4 billion, aimed to alleviate the immediate impact of the surging global oil prices triggered by the U.S.-Iran conflict.
Furthermore, in 2022, the Ford administration introduced its own temporary fuel tax break, reducing taxes on gas by 5.7 cents per liter and on diesel by 5.3 cents per liter. This adjustment aligned the provincial tax rates on gas and diesel to a nominal nine cents per liter, resulting in an annual saving of approximately $115 for households, as indicated in the 2026 provincial budget.
Ford urged Carney to extend the federal fuel tax holiday until January 1 and proposed that the federal government mirror Ontario’s efforts by making the tax suspension permanent.
The federal Conservatives have been advocating for an extension of the fuel tax holiday since Carney’s initial announcement. Ford’s letter demonstrates rare unity between Progressive Conservative Premier Ford and Conservative Opposition Leader Pierre Poilievre, who have historically had a strained relationship, causing divisions within Canada’s conservative movement.
In contrast to Ford’s appeal, Poilievre is calling for the removal of GST on gas and diesel until the year-end and the permanent elimination of clean fuel regulations. Poilievre criticized Carney’s intentions, highlighting the burden of additional taxes on consumers and the economic ripple effects on various sectors.
A spokesperson for Finance Minister François-Philippe Champagne declined to confirm any extension of the excise tax holiday, emphasizing the Liberal government’s commitment to enhancing affordability and exploring measures to address the challenging global economic landscape.
