-- Canada Prime Minister Mark Carney said Tuesday the government will suspend fuel excise taxes from Apr. 20 to Sep. 7, cutting gasoline prices by CA$0.10 ($0.073) per liter.
Carney made the remarks at a press conference in Ottawa.
The tax suspension will run from Apr. 20 until Labor Day and will cut gasoline prices by about 10 Canadian cents per liter and diesel by 4 Canadian cents, Carney said.
He added provinces levy separate fuel excise taxes averaging about 13 Canadian cents per liter.
Carney added that the measure also applies to aviation fuel for domestic flights.
The policy will cost about CA$2.4 billion, Carney added, calling it a significant fiscal step to balance consumer relief with the uncertainty around energy prices.
Carney said the temporary measure aims to ease pressure on households and businesses, adding, "So we're balancing support for Canadians with the measure today..."
He added the policy supports "responsible fiscal management and reinforcing the plan to build Canada strong on housing, on community infrastructure, energy infrastructure, new ports, etc."
Fuel costs surged by about 45% in 2026, largely driven by geopolitical tensions, including the Iran conflict.
Carney's announcement follows his Liberal Party's sweep in three special elections, securing a parliamentary majority that allows his government to pass legislation without opposition support and reduces near-term election risks.
Canadian consumers currently pay 27% more at the pump compared with pre-conflict levels, according to a Bloomberg analysis citing Natural Resources Canada data.