Canada to extend federal gas tax holiday until 2027

9/2/2026

Gasoline and diesel tax holiday extended to Jan. 31, 2027 See how the phased return could affect fuel costs and household budgets

Finance Minister FrançoisPhilippe Champagne said the federal government will keep its excise tax holiday on gasoline and diesel in place until Jan. 31, 2027. The temporary relief had been scheduled to end on Labour Day. Under the new plan, the tax will return at half its previous level from Feb. 1 to March 31, 2027, before going back to the full rate on April 1. The measure also includes the excise tax on aviation fuel. The government said the extension is meant to help households and businesses cope with higher fuel and living costs. Finance Canada estimates the added cost of the extension at $2.9 billion, bringing total fuel tax relief since April to $5.3 billion.