Federal pause on gasoline, diesel tax takes effect today, after Iran fuel price spike

A motorist fuels up a vehicle at a Shell gas station in Vancouver, on Saturday, Oct. 1, 2022. THE CANADIAN PRESS/Darryl Dyck

OTTAWA — Ottawa’s temporary suspension of some fuel taxes kicks in today, with Canadians likely to save 10 cents per litre on regular gasoline, and four cents on a litre of diesel.

Prime Minister Mark Carney had announced last week a pause on those fuel excise taxes up until Labour Day.

The Liberals say this is a prudent way to tame prices at the pumps, at a cost of roughly $2.4 billion.

The Conservatives argue this isn’t enough to meet rising energy costs, calling for the pause to extend to the end of the year, as well as an end to clean-fuel standards and the industrial carbon tax.

U.S. President Donald Trump’s decision to wage a war against Iran alongside Israel has sent global energy costs surging, with Tehran and later Washington constraining certain shipments in the Strait of Hormuz.

In recent days, the CAA’s gas price tracker has listed an average cost of $1.74 per litre at pumps across the country — more than 40 cents higher than a year ago.

This report by The Canadian Press was first published April 20, 2026.

The Canadian Press staff