Canada’s Parliamentary Budget Officer estimates the extended federal fuel excise tax relief will reduce government revenues by C$4.9 billion in fiscal 2026-27.
The new estimate is more than double the C$2.1 billion projected in May, when the tax suspension was expected to end on Sept. 7. The government extended the suspension through Jan. 31, 2027. Half the regular federal excise tax rate will apply from Feb. 1 through the end of March, according to the Department of Finance.
The The earlier forecast put average savings at C$124 through early September. The federal excise tax is a fixed levy on gasoline and diesel. Provinces, and some cities, also impose fuel taxes. Quebec’s provincial carbon pricing is included in the pump price.