Carney announces planned suspension of fuel excise taxes until Labour Day

Prime Minister Mark Carney announced that his government will suspend the excise fuel tax on gasoline and diesel until Labour Day.

The feds say the tax break will start April 20. Canadians can expect to save 10 cents per litre on regular gas and four cents a litre on diesel.

The move comes as the war in Iran rages on – with the closure of the Strait of Hormuz continuing to affect global oil prices.

Aviation fuel prices will also feel some relief under the same suspension.

Government officials say the move will reduce costs for truckers and other businesses with expensive transportation costs.

Carney told reporters on Parliament Hill that suspending the excise tax is a “responsible, temporary measure” offering “real relief” for Canadians.

Conservative Leader Pierre Poilievre has been calling for a similar move as of recent, saying his proposal would have taken 25 cents off a litre of gasoline.

On Monday, U.S. President Donald Trump said his military had begun a blockade of Iranian ports in a bid to force the reopening of the Strait of Hormuz.

The continued conflict in the strait off the coast of southern Iran has led to the rise of fuel prices around the world.

With files from The Canadian Press

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