Ontario Premier Doug Ford has urged Prime Minister Mark Carney to prolong the federal gas excise tax holiday until the year’s end. Ford emphasized the inopportune timing of reintroducing the federal fuel excise tax amidst President Trump’s tariff threats and Canadians facing rising living expenses.
Carney had previously lifted the 10-cent federal excise tax on a liter of gas and four cents per liter on diesel until Labor Day, citing the need to alleviate short-term financial pressures caused by oil price spikes. In response, Ford’s government implemented its temporary fuel tax reduction in 2022, aligning provincial tax rates on gas and diesel to yield yearly household savings as per the 2026 provincial budget.
Ford’s letter to the Prime Minister proposed extending the federal fuel tax holiday until January 1, suggesting a permanent suspension to align with Ontario’s cost-saving initiatives. The federal Conservatives have echoed Ford’s call for extending the tax holiday, advocating for its continuation until year-end.
The letter signifies a rare alignment between Progressive Conservative Premier Ford and Conservative Opposition Leader Pierre Poilievre, amid their historically strained relationship that has stirred divisions within Canada’s conservative circles. Poilievre has additionally advocated for removing the GST on gas and diesel until December 31 and scrapping clean fuel regulations permanently, emphasizing the burden these taxes impose on consumers and escalating living costs.
Finance Minister François-Philippe Champagne’s spokesperson, John Fragos, emphasized the government’s dedication to enhancing affordability without confirming plans to extend the excise tax holiday. Fragos highlighted the government’s commitment to fostering growth, competitiveness, and cost mitigation amid prevailing global economic challenges.
