Ontario Premier Doug Ford has reached out to Prime Minister Mark Carney, urging him to prolong the federal gas excise tax break until the year’s end. Ford emphasized the inopportune timing of reinstating the federal fuel excise tax amid threats of additional tariffs by President Trump and the ongoing financial challenges faced by Canadians with rising housing, grocery, and household expenses.
Carney had initially removed the 10-cent federal excise tax on gasoline and four cents on diesel until Labor Day, citing the need to alleviate short-term pressures resulting from the oil price surge following the U.S.-Iran conflict. Ford’s government had introduced its own temporary fuel tax relief in 2022, reducing taxes on gas and diesel by 5.7 and 5.3 cents per liter, respectively, resulting in significant annual savings for households according to the 2026 provincial budget.
Ford proposed that if Carney extends the federal fuel tax holiday until January 1, the federal government could align with Ontario’s efforts to permanently suspend the tax. The federal Conservatives have been advocating for the tax holiday extension, aligning Ford and Conservative Opposition Leader Pierre Poilievre in a rare show of agreement amid their historically strained relationship, which has caused divisions within Canada’s conservative movement.
In contrast to Ford’s request, Poilievre is pushing for the removal of the GST on gas and diesel until the year’s end, along with the permanent elimination of clean fuel regulations, citing the burden on Canadian consumers. Finance Minister François-Philippe Champagne’s spokesperson emphasized the government’s commitment to enhancing affordability by pursuing measures that lower costs and enhance competitiveness in the challenging global economic climate.
