Prime Minister Mark Carney has announced a temporary suspension of the federal fuel excise tax starting next week until Labour Day.
The announcement comes hours after Carney secured a majority government through Monday’s three byelections.
“We’re also removing the fuel excise tax on aviation fuels. This will remove up to $0.10 per liter on gasoline and $0.04 per liter on diesel fuel,” he said at a news conference in Ottawa.
“Combined with our earlier elimination of the consumer carbon tax, our government will have reduced fuel prices on gas by up to $0.28 per liter.”
As a result, Carney said the cost of this measure will be $2.4 billion dollars.
“We know that Canadians are feeling the pressures of everyday expenses right now. We know they need a boost today and a bridge to tomorrow,” he said.
The suspension is largely due to the ongoing U.S.-Iran war, with movement of shipments along the Strait of Hormuz have mostly been stalled. It will start on April 20 and last until Sept. 7.
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Conservative Leader Pierre Poilevre also recently called on the federal government to lift the fuel excise tax, alongside “clean fuel standard and GST surcharges from gas and diesel would save consumers about 25 cents a litre.”
The average gas prices in Canada is currently sitting at $1.73 per litre, down from $1.81 on Thursday, according to CAA. at $1.80 on Friday, down two cents a litre compared to Thursday.
Still, prices remain much higher compared to this time last year ($1.29) and even a month ago ($1.53), according to CAA.
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