The previously announced pause on the tax was set to end on Sept. 7
OTTAWA — Finance Minister François-Philippe Champagne will announce an extension of the gas tax holiday until the end of January, according to a government source.
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The previously announced pause on the federal fuel excise tax was set to end on Sept. 7, adding 10 cents per litre of gas and four cents per litre of diesel after Labour Day.
Champagne is scheduled to hold a press conference in Ottawa on Wednesday at a Canadian Tire store, where he will announce the move.
Prime Minister Mark Carney announced the pause on the tax in April as the conflict between the United States and Iran sparked an increase in gas prices.
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Polling showed that nearly two-thirds of Canadians disapproved of the plan to let the pause end next week.
The move will likely not sway Conservative Leader Pierre Poilievre who has called on the government to remove “all taxes on gas” until at least July 1 2027.
Ontario Premier Doug Ford wrote to Carney last month to ask him to extend the pause on the federal fuel excise tax until at least the end of the year to help Canadians navigate the impact of additional U.S. tariffs.
On Wednesday, Ford welcomed news of the extension of the gas tax holiday. “Now let’s make it permanent,” he wrote on X.More to come.
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