Poilievre urges Carney to keep fuel excise tax suspended until Canada Day

Conservative Leader Pierre Poilievre is pressing Prime Minister Mark Carney to maintain the suspension of Canada's federal fuel excise tax, which is set to be reinstated on September 7. Ottawa had temporarily removed the tax in April, a measure Poilievre argues should be extended until at least Canada Day 2027.

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When Conservatives first called on you to take all federal taxes off gas and diesel until the new year, Canadians were already struggling with the cost of living. Since then, things have not gotten better. They have gotten worse.

In a letter to Carney, Poilievre stated that Canadians are facing worsening cost-of-living pressures. He pointed to rising gas prices and persistent grocery inflation, referencing an OECD report that highlighted Canada's high food price increases within the G7. Poilievre also noted that global oil prices remain elevated due to fallout from the Iran conflict, supply disruptions, and the closure of the Strait of Hormuz to cargo traffic.

The Canadian Automobile Association reports the national average price for regular gasoline is now about CAD$1.67 per litre, an increase from the previous week and significantly higher than the same time last year. Drivers have been saving approximately 10 cents per litre on gasoline and four cents on diesel during the tax pause.

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A tax hike on fuel is a tax hike on everything.

Poilievre warned that a fuel tax hike impacts all goods, making groceries, construction materials, and other transported items more expensive. He also called for the removal of all federal taxes on gas to provide further savings for Canadians. Ontario Premier Doug Ford has also urged Carney to extend the excise tax suspension.

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They would lower prices at the pump while making groceries, homebuilding materials and everything else transported using fuel more affordable.