Canada’s federal government is temporarily suspending its federal fuel excise tax levied on gasoline and diesel.
Prime Minister Mark Carney made the announcement in Ottawa after his government secured a majority in Parliament from three byelection wins.
According to the federal government, the tax suspension is expected to reduce the cost of gas at the pumps by 10 cents per litre and four cents per litre for diesel fuel.
The suspension will come into effect on April 20 and last until Sept. 7 of this year.
Carney’s government announced the suspension as crude oil prices remain volatile and trade as high as $100 U.S. per barrel.
The Iran war that began on Feb. 28 has effectively halted shipments through the Strait of Hormuz, a waterway where 20% of the world’s crude oil usually flows.
Canada’s federal government has charged an excise tax on gas at a flat rate of 10 cents per litre since 1995, while diesel has been taxed at four cents per litre since 1987.
The suspension of the federal gas tax comes ahead of the summer months when Canadians take road trips and gas prices typically rise.
Related Stories
