Where Gas Prices in Canada Could Go Amid Global Tensions
While the federal government is extending its suspension of the excise tax holiday into 2027, Canadians may not see broad relief at the pump, with global energy pressures continuing to push fuel prices upward. Ottawa announced on Sept. 2 that it will extend its suspension of the excise tax on gasoline and diesel until Jan. 31, 2027, after the tax holiday was set to expire on Sept. 7. The tax will be reinstated at half its regular rate from Feb. 1 to March 31, before returning to its regular rate on April 1. Economists say that while the gas tax holiday will provide some price relief to Canadians, risks to global energy markets could continue to push energy prices—and inflation—higher.
The federal government is extending the suspension of the excise tax on gasoline and diesel until January 31, 2027. After this period, the tax will be reinstated at a reduced rate for two months before returning to its normal rate. Despite this measure, economists warn that global energy market dynamics could continue to increase fuel prices and inflation for Canadians.
- The federal government has extended the suspension of the excise tax on gasoline and diesel until January 31, 2027.
- The tax will be reduced to half its regular rate from February 1 to March 31, 2027.
- Global energy market risks may counteract the tax relief, potentially keeping fuel prices and inflation high.
Write a comment