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Carney government to extend gas tax holiday into the new year: Report
The extension keeps fuel prices 10 cents a litre lower on gas and 4 cents on diesel as Ottawa prepares new U.S. countertariffs.
Finance Minister Philippe Champagne will announce an extension of the Gas tax holiday until Jan. 31, 2027, at a press conference in Ottawa on Wednesday.
Originally introduced in the spring update following fuel price spikes caused by the war in Iran, the temporary measure cuts 10 cents per litre from Gas prices and diesel.
Premier Doug Ford welcomed the extension, calling for the tax break to be made "permanent," while The Conservatives continue to demand GST relief to reduce fuel costs by 25 cents per litre.
The announcement precedes planned countertariffs on $27.6-billion in goods, responding to President Donald Trump's tariffs on about $28-billion of Canadian products after trade negotiations collapsed last month.
Global fuel prices are rising again as the Strait and Hormuz remain critical supply line choke points, intensifying pressure on the government's relief measures amid the broader Iran conflict.