TORONTO, ONTARIO - Ontario Premier Doug Ford is pressing Prime Minister Mark Carney to extend the federal excise tax cut on gasoline and diesel, warning that letting the relief expire on Labour Day would hit Canadians with a sudden financial blow amid persistent economic pressures.
In a letter posted to social media X on Friday, Ford called on the federal government to maintain the suspension until at least January 1, 2027, or to eliminate the tax permanently to help families cope with rising living costs and trade tensions.
The current federal suspension—enacted in April following a spike in global oil prices driven by the conflict involving Iran—saves drivers 10 cents per litre on regular gasoline and 4 cents per litre on diesel. The tax break is scheduled to expire on September 7, exactly one month away.
Premier Ford highlighted that Canadians continue to grapple with high everyday costs, compounded by ongoing economic uncertainty and trade friction stemming from U.S. tariffs.
“The suspension... has provided much-needed relief to people struggling with the rising cost of living and ongoing economic uncertainty caused by U.S. tariffs,” Ford wrote. “I am urging you to extend the suspension... until at least January 1, 2027. The federal government could also match Ontario’s ambition to lower costs by making the suspension permanent.”
The push to extend fuel tax relief has become a central point of discussion among Canadian political leaders. Federal Conservative Leader Pierre Poilievre has amplified calls for relief, urging the Liberal government not only to keep the federal excise tax suspended, but also to remove the GST on gas and diesel, alongside the permanent elimination of the clean fuel standard and the industrial carbon tax.
Ontario has long positioned itself as a leader in fuel tax reductions. The province initially slashed its provincial gas tax by 5.7 cents per litre and its diesel tax by 5.3 cents per litre on July 1, 2022. After a series of temporary extensions, the provincial government made the cut permanent last year, locking the provincial tax rate at 9 cents per litre.
With the September deadline fast approaching, pressure is mounting on Prime Minister Carney's government to clarify whether motorists will see fuel prices jump back up or if additional relief will be granted.