The federal government has extended its excise tax cut on gasoline and diesel until Jan. 31, 2027, a source tells CityNews.
The tax break, which saves Canadians 10 cents per litre on regular gasoline and four cents on a litre of diesel, was set to expire on Labour Day. However, there were calls to extend it beyond that date.
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.
Finance Minister François-Philippe Champagne is expected to announce the extension of the gas tax break during a press conference in Ottawa on Wednesday afternoon.
Gas prices are rising again as conflict between the U.S. and Iran intensifies and as the Strait of Hormuz remains a supply line choke point.
In early August, Ontario Premier Doug Ford called on Prime Minister Mark Carney to extend the suspension until at least Jan. 1, 2027, or even make it permanent. Conservative Leader Pierre Poilievre said he wants the excise tax relief extended until at least July 1, 2027, at which time it can be reviewed.
More to come