Carney will cut some (but not all) taxes on fuel
Critics accuse Liberal government of half-measures.
As the war in Iran seems to be winding down, energy prices around the world continue to spike, and governments look for ways out of this predicament.
As for Canada, the Liberal government will suspend the federal fuel excise tax on gasoline and diesel in the period from April 20 to September 7.
Yesterday (14), Prime Minister Mark Carney said the measure is to help consumers and businesses deal with rising prices.
Carney government to temporarily suspend federal gas tax starting next week https://t.co/jupvZzWlgU
— CTV News (@CTVNews) April 14, 2026
Reuters reported:
“’(This) is a responsible measure that will reduce operating costs for truckers and businesses in the food, agriculture, housing, construction, and delivery sectors’, he said. The measure is expected to reduce the cost of regular gasoline by 10 cents a liter and diesel by four cents a liter, he added.”
Mark Carney’s announcement that there would be a temporary suspension of the fuel excise tax on gas and diesel is a step in the right direction, the province’s truckers say. https://t.co/NXaMIMHqWl
— CityNews Vancouver (@CityNewsVAN) April 15, 2026
But while the measures are being welcomed, experts say they don’t go far enough.
Toronto Sun reported:
“While the move may spell some temporarily relief for motorists, gas analyst Dan McTeague told the Toronto Sun it doesn’t go far enough if the Carney Liberals truly cared about affordability.
‘I’m not sure how dropping four cents, with the HST, is going to alleviate what has been a tremendous increase in the price of diesel’, he said. […] ‘The bigger issue is that it should’ve been widened — both the federal government continuing to charge GST and the province’s portion of eight per cent on the higher price’, he said. ‘That’s the real money — that’s where the government continues to make and offset any potential loss in revenue by doing this’.”
McTeague stressed that ‘unaffordable government policies’ weigh heavily in what Canadians pay at the pumps.
“’It isn’t the excise tax — it’s the GST, it’s the weak Canadian dollar that no longer has the status of being a ‘petro-dollar’ as a result of blocking pipelines for 10 years’, McTeague said. ‘The very green net-zero policies this government are pursuing is the real culprit of driving up the costs of everything’.
[…] ‘(Carney) says he’s doing it for good reasons — well, prove it: Suspend the GST, which is what I would have done in this case, because 13% on $2.40 per liter for diesel is 28, 29 cents per liter, not four cents. That’s the real elephant in the room’, McTeague said.”
Read more:
Mark Carney secures absolute majority in Canada after decisive snap election
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