Ford presses Carney to extend fuel tax suspension or scrap it permanently

TORONTO — Ontario Premier Doug Ford is urging Prime Minister Mark Carney to extend the federal suspension of the excise tax on gasoline and diesel until at least January 1, 2027 — or eliminate it for good.In a letter dated Friday and posted to X, Ford warned that Canadians cannot afford higher prices at the pumps with the temporary federal holiday set to expire on September 7.“As President Trump threatens additional 50% tariffs — including on goods that are compliant with the Canada–United States–Mexico Agreement — and as Canadians continue to grapple with the cost of housing, grocery prices and everyday household expenses, now is not the time to re-introduce the federal fuel excise tax on gasoline and diesel,” Ford wrote.The federal suspension, introduced in April, removes a 10-cent-per-litre tax on gasoline and a four-cent-per-litre tax on diesel. It was presented as a short-term measure to offset a spike in global oil prices linked to the U.S. conflict with Iran and is estimated to cost Ottawa $2.4 billion..Ford noted that Ontario already cut its own provincial fuel taxes by more than 10 cents per litre in 2022 and made the reduction permanent last year. He said the provincial move has returned $2.3 billion to families and businesses, saving households $500 each.“The federal government could also match Ontario’s ambition to lower costs by making the suspension permanent,” the premier wrote.He stressed that driving remains essential for many Ontarians, particularly in suburban, rural and northern communities, where public transit alternatives are limited. Higher fuel costs, Ford argued, would ripple through the economy by raising transportation expenses for farmers, manufacturers and other businesses, ultimately increasing the price of nearly everything consumers buy.“Many households are already facing difficult choices as they prepare for the fall and winter months, managing back-to-school expenses, extra-curricular activities and rising heating costs,” the letter stated. “Now is not the time to add more financial pressure on household budgets.”.Federal Conservative Leader Pierre Poilievre has also called on the Carney government to keep the excise tax suspended and to remove the GST from gasoline and diesel, while permanently eliminating the clean fuel standard and industrial carbon tax.As of Friday afternoon, the Prime Minister’s Office had not responded to Ford’s request.Ford’s letter arrives amid ongoing cost-of-living concerns and renewed trade uncertainty with the United States. The premier positioned the call as a practical step to protect working families and keep Ontario competitive.

Ford presses Carney to extend fuel tax suspension or scrap it permanently

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