Mark Carney Extends Fuel Tax Suspension Until 2027

The government of Mark Carney extended the suspension of a federal fuel excise tax until early 2027 to combat surging energy costs. Originally introduced in April, the measure reduces gasoline prices by approximately 10 Canadian cents per liter and diesel by about 4 Canadian cents, while also applying to aircraft fuel.

The extension follows a roughly 30% spike in crude oil prices since the start of the war in Iran. This conflict has disrupted maritime traffic in the Strait of Hormuz, a critical waterway for global oil and liquefied natural gas shipments.

The tax break was scheduled to expire on September 7. The federal treasury estimates the cost of the extension will be approximately C$2.4 billion.