Ford Urges Carney To Extend Federal Gas Tax Beyond Labour Day Or Make It Permanent
Adedokun Waliyu
2 min read
Ontario Premier Doug Ford is calling on Prime Minister Mark Carney to extend the suspension of the federal excise tax on gasoline and diesel, which is set to expire on Labour Day.
In a letter posted to X on Friday, Ford urged Carney to extend the suspension until at least Jan. 1, 2027, or even make it permanent.
“The suspension, which is due to expire in one month after September 7, has provided much-needed relief to people struggling with the rising cost of living and ongoing economic uncertainty caused by U.S. tariffs,” the Premier stated in the letter.
“I am urging you to extend the suspension of the federal fuel excise tax on gasoline and diesel until at least January 1, 2027. The federal government could also match Ontario’s ambition to lower costs by making the suspension permanent.”
Back in April, the federal government announced a suspension of the fuel excise tax on gasoline and diesel until Sept. 7 as gas prices soared due to the Iran war.
The tax break saves Canadians 10 cents per litre on regular gasoline and four cents on a litre of diesel.
Federal Conservative Leader Pierre Poilievre has also urged the Liberal government to suspend the federal fuel excise tax and the GST on gas and diesel, and to permanently eliminate the clean fuel standard and industrial carbon tax.
Ontario first temporarily cut the gasoline tax rate by 5.7 cents per litre and the fuel (diesel) tax rate by 5.3 cents per litre on July 1, 2022, and repeatedly extended it until eventually making it permanent last year, keeping the provincial rate of tax at nine cents per litre.
