Ford calls on Carney to extend gas tax cut or make it permanent

Ontario Premier Doug Ford is urging Prime Minister Mark Carney to make a gas tax suspension permanent, or at least extend it beyond its looming expiry.

Carney announced in April that the government would pause collection of the federal fuel excise tax on gasoline and diesel until Labour Day, as a way to counteract rising gas prices.

It saves Canadians 10 cents per litre on regular gasoline and four cents on a litre of diesel.

Ford has written today to Carney asking him to keep the tax break in place until Jan. 1, 2027, or to make the suspension permanent.

Ontario first temporarily cut its provincial gas tax rate by 5.7 cents in 2022 and repeatedly extended it until eventually making it permanent last year, keeping the provincial rate of tax at nine cents per litre.

Federal Conservative Leader Pierre Poilievre has also urged the Liberal government to suspend the federal fuel excise tax and the GST on gas and diesel, and to permanently eliminate the clean fuel standard and industrial carbon tax.

This report by The Canadian Press was first published Aug. 7, 2026.

By Allison Jones | Copyright 2026, The Canadian Press. All rights reserved.