Berk Kutay Gokmen
14 April 2026•Update: 14 April 2026
Canada will suspend federal fuel taxes until early September in response to a surge in gas prices, primarily due to the Iran war, Prime Minister Mark Carney announced on Tuesday.
“Now we all know that because of the war with Iran, fuel prices have increased sharply around the world, including right here in Canada, so we're taking more action,” Carney told a press conference in Ottawa, the nation’s capital.
“Canada's new government will temporarily suspend the federal fuel excise tax from next Monday until Labor Day,” he said, referring to a holiday falling in early September. “We're also removing the fuel excise tax on aviation fuels. This will remove up to 10 (Canadian) cents per liter on gasoline and four cents per liter on diesel fuel.”
The move will act as a bridge to help get Canadians over "short-term pressures," in the face of an “enormous shock in the global economy” he said, adding that he plans on “building a stronger economy.”
"Today's cut to the fuel excise tax is a responsible temporary measure consistent with what it takes to build a stronger economy, a more affordable economy combined with sound fiscal management."