Ottawa Extending Gas Tax Holiday to January
The pause will save drivers billions in lost revenue, while gas prices remain elevated and the tax returns in stages starting in February 2027.
- On Wednesday, the federal government extended the suspension of federal fuel excise taxes until January 2027, responding to energy market volatility caused by instability in the Middle East and the Strait of Hormuz.
- Finance Minister François-Philippe Champagne said the relief is a direct response to global oil market volatility, which officials expect to continue "for the foreseeable future."
- The entire tax holiday will cost $5.3 billion in lost government revenue, with the excise tax phasing back in over three months starting in February 2027 at 50 per cent of the regular rate.
- Conservative Leader Pierre Poilievre issued a statement saying his party "won another battle for Canadian families," while Premier Doug Ford called for the pause to be made "permanent."
- NDP Leader Avi Lewis criticized the government's decision, calling instead for a "windfall tax" on energy companies, noting that oil giants are set to make $100 billion in profits this year.
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Toronto drivers get free gas as federal fuel tax cut set to extend
What to know DraftKings held its Gameday Fuel giveaway at a gas station in Scarborough on Wednesday. Drivers received a free full tank of gas while supplies lasted. Toronto drivers told Now Toronto that rising fuel costs are making it harder to manage their budgets. The federal government plans to extend its temporary fuel tax cut into 2027 For Toronto drivers feeling the pinch at the pump, a free full tank of gas offered some welcome relief We…
The suspension has had a moderate effect on household finances, experts point out.
The federal government extended the suspension of the excise tax by 10 cents per litre of gasoline until January 31, 2027, and gradually brought it back until a full return in April 2027.
Durham Radio News
Ottawa extending gas tax holiday to January
OTTAWA — The federal government is extending the suspension of federal fuel excise taxes until the new year to help Canadians feeling the pressure from higher energy costs caused by instability in the Middle East. “For Canada, it means practical relief at a time when Canadians need it most,” Finance Minister François-Philippe Champagne said Wednesday in Ottawa. The fuel excise tax will remain suspended in full until January 2027. It will be phas…
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