Ontario Premier Doug Ford is pushing for an extended suspension of the federal excise tax on gasoline and diesel, reaching out to Prime Minister Mark Carney to consider extending the relief until at least Jan. 1, 2027, or possibly making it a permanent change.
Ford emphasized the importance of this extension, highlighting how the current suspension, slated to end on Labour Day, has been a significant aid to individuals grappling with the challenges of a high cost of living and economic uncertainty spurred by U.S. tariffs. The Premier stressed the need for continued relief by extending the tax break.
Earlier this year, the federal government announced the temporary suspension of the fuel excise tax due to elevated gas prices triggered by the conflict in Iran. This measure has been providing Canadians with savings of 10 cents per litre on regular gasoline and four cents on diesel.
Notably, Federal Conservative Leader Pierre Poilievre has also advocated for the suspension of the federal fuel excise tax and GST on gas and diesel, alongside the permanent removal of the clean fuel standard and industrial carbon tax.
It is worth mentioning that Ontario had initially reduced the gasoline and diesel tax rates temporarily but later decided to make these cuts permanent, maintaining the provincial tax rate at nine cents per litre.