Canada has enacted legislation extending the temporary suspension of the federal fuel excise tax until 31 January 2027, with a reduced rate applying through March 2027 amid rising global energy prices.
Canada’s Department of Finance announced, on 29 October 2026, that it has passed legislation to extend the federal fuel excise tax relief. Bill C-38, the Canadian Fuel Affordability Act, has received Royal Assent and is now law.
The government passed the bill to ease the cost of fuel. Supply disruptions and instability in the Middle East have pushed energy prices up around the world.
What the law does
The law extends the temporary suspension of the federal fuel excise tax until 31 January 2027. Drivers will continue to save more than CAD 5 each time they fill a typical 50-litre tank of gasoline.
From 1 February 2027, the federal fuel excise tax returns to 50% of its regular rate. That reduced rate stays in place until 31 March 2027. The relief covers gasoline, leaded and unleaded aviation gasoline, diesel and aviation fuel.
