OTTAWA — The Carney government is extending its temporary federal fuel tax suspension until Jan. 31, 2027, after Conservative Leader Pierre Poilievre warned Canadians would otherwise face a 10-cent-per-litre increase following Labour Day.Finance Minister François-Philippe Champagne is expected to announce the extension Wednesday afternoon, according to a senior government official who spoke to The Globe and Mail. Ontario Premier Doug Ford welcomed the extension but called on Ottawa to go further.“Good. Now let’s make it permanent,” Ford wrote on X.The existing suspension had been scheduled to expire after Labour Day, which falls on Monday, September 7.Ottawa temporarily reduced the federal excise tax to zero on April 20 amid rising energy prices. The measure saves motorists 10 cents per litre on gasoline and four cents per litre on diesel..The government’s spring economic update estimated the suspension would remain in effect until the end of Labour Day. It also covered aviation fuel.The extension comes one day after Poilievre and Conservative national revenue critic Jasraj Hallan wrote to Prime Minister Mark Carney demanding that he cancel what they called a “Labour Day gas tax hike.”“Next week, Canadians will drive by the gas station and see prices suddenly rise 10 cents per litre as your government hikes the gas tax,” they wrote.“Not only will they pay more to fill up their car, but they will pay more for everything shipped by truck or train.”The Conservatives called for the excise tax suspension to remain in place until at least Canada Day 2027.Their proposal went further than the government’s reported extension by calling for Ottawa to remove the GST from gasoline and diesel and permanently eliminate the industrial carbon price and Clean Fuel Regulations.“Together, these measures would save Canadians up to 25 cents per litre and a family as much as $1,200 a year,” Poilievre and Hallan wrote.The Conservatives cited polling that they said showed 63% of Canadians opposed ending the excise tax suspension, including 72% of seniors and 68% of women.“Canadians can’t afford to pay even more for fuel, food and homebuilding materials,” the letter said. “It’s time to cancel the Liberal tax hike, extend relief and deliver lower, more affordable prices for our people.”The government’s decision also comes days before new Canadian counter-tariffs on $27.6 billion in American goods take effect September 8.Ottawa has said the tariffs will match new U.S. duties dollar for dollar and rate for rate. Canadian tariffs of 15%, 25% and 50% will apply to more than 700 American products, including steel, aluminum, dairy products, appliances, agricultural equipment, pulp and paper, plastics and electronics.The measures are retaliation for the Trump administration’s 50% tariffs on $27.6 billion in Canadian exports, which took effect August 22 after bilateral trade negotiations collapsed.The federal fuel tax suspension will now remain in place through the remainder of 2026 and the first month of 2027.
