Ottawa to announce extension of gas tax holiday beyond Labour Day
Finance Minister François-Philippe Champagne is expected to announce an extension of the gas tax holiday at a press conference in Ottawa on Wednesday.
The Liberals temporarily suspended the federal 10-cent-per-litre excise tax on gas in April when the war in Iran caused global fuel prices to spike.
Gas prices are rising again as conflict between the U.S. and Iran intensifies and as the Strait of Hormuz remains a supply line choke point.
The excise tax suspension was supposed to end after Labour Day but a government official confirmed to The Canadian Press that the tax will not be reimposed next week.
The federal government first paused the fuel excise tax on April 14. Statistics Canada reported the national average price for a litre of gas that month was about $1.79.
The Canadian Automobile Association, better known as CAA, reports the national average gas price was $1.729 per litre on Sept. 2. The fuel excise tax would increase that price to $1.829 per litre.
That would add $5 to the cost of filling a 50 L tank.
Carney told reporters in April the government expected the four month gas tax holiday to cost about $2.4 billion.
The Conservatives have been calling for an extension of the gas tax pause to the end of the year, as well additional GST relief, which they say would reduce fuel prices by 25 cents per litre.
Ontario Premier Doug Ford welcomed the extended pause in a statement on social media and called for it to be made "permanent."
This report by The Canadian Press was first published Sept. 2, 2026.
By David Baxter | Copyright 2026, The Canadian Press. All rights reserved.