Ontario Premier Doug Ford has formally requested Prime Minister Mark Carney to prolong the ongoing federal gas excise tax break until the end of this year. Ford emphasized the significance of maintaining the tax relief, highlighting the current financial burdens faced by Canadians due to factors like housing costs, grocery prices, and everyday expenses.
The temporary removal of the 10-cent federal excise tax on gasoline and four cents on diesel, initially set until Labour Day on September 7, was introduced by Carney in response to the spike in global oil prices amid geopolitical tensions. The anticipated cost of this measure is approximately $2.4 billion, aimed at alleviating short-term economic pressures on Canadians.
In 2022, the Ford administration implemented its own temporary fuel tax reduction, slashing taxes on gas by 5.7 cents per liter and on diesel by 5.3 cents per liter. This adjustment aligned the provincial tax rates for gas and diesel at nine cents per liter, resulting in annual savings of around $115 per household, as outlined in the 2026 provincial budget.
Ford urged Carney to extend the federal fuel tax holiday until January 1, proposing a permanent suspension aligned with Ontario’s efforts to reduce costs. The collaboration between Ford and Conservative Opposition Leader Pierre Poilievre on this issue signifies a rare instance of agreement between the Progressive Conservative premier and the Conservative opposition.
In contrast to Ford’s plea, Poilievre advocated for the removal of GST on gas and diesel until the year-end, alongside a permanent elimination of clean fuel regulations, citing concerns over escalating consumer prices and the adverse impact on various economic sectors.
While Finance Minister François-Philippe Champagne’s spokesperson refrained from confirming an extension of the excise tax holiday, the Liberal government expressed its commitment to enhancing affordability through collaborative efforts with the provinces to address cost concerns amid the current challenging global economic climate.