The federal government is extending its temporary fuel tax holiday on gasoline and diesel until Jan. 31, 2027.
Finance Minister François-Philippe Champagne announced the extension Wednesday in Ottawa, saying the measure is aimed at helping Canadian families and businesses manage the rising cost of living.
The federal government removed the 10-cent-per-litre excise tax on gasoline and four-cent tax on diesel in April. The tax break was originally set to expire Sept. 7 and was expected to cost about $2.4 billion.
Ontario also introduced a temporary fuel tax cut in 2022. The province later made the reduction permanent, lowering its fuel tax rate to nine cents per litre for both gasoline and diesel.
Premier Doug Ford welcomed the federal extension Wednesday and called for Ottawa to make the tax break permanent.
