Ontario Premier Doug Ford has reached out to Prime Minister Mark Carney, urging him to prolong the current federal gas excise tax exemption until the end of the year. Ford emphasized the importance of maintaining the tax relief amidst uncertainties like potential tariff increases and the ongoing financial challenges faced by Canadians in various aspects such as housing, groceries, and daily expenses.

Earlier in April, Carney had temporarily lifted the 10-cent federal excise tax on a liter of gasoline and four cents per liter on diesel until September 7, coinciding with Labour Day. This measure, estimated to cost around $2.4 billion, aimed to alleviate the immediate financial burdens caused by the surge in global oil prices due to geopolitical tensions.

In 2022, the Ford administration enacted its own temporary fuel tax break, reducing taxes on gasoline by 5.7 cents per liter and diesel by 5.3 cents per liter. This adjustment brought the provincial tax rates on gasoline and diesel to a combined nine cents per liter, resulting in an annual saving of approximately $115 per household as outlined in the 2026 provincial budget.

Ford’s letter to the prime minister proposed extending the federal fuel tax exemption until January 1, with a suggestion that the federal government should consider making the suspension permanent to align with Ontario’s cost-saving initiatives.

Since Carney’s initial announcement of the fuel excise tax holiday, the federal Conservatives have consistently advocated for extending the tax relief until the year-end. Ford and Conservative Opposition Leader Pierre Poilievre, despite their historically strained relationship, found common ground in supporting the tax holiday extension, underscoring a rare agreement between the Progressive Conservative premier and the Conservative Opposition Leader.

Unlike Ford’s appeal, Poilievre has pressed for the removal of the Goods and Services Tax (GST) on gasoline and diesel until December 31, along with a permanent elimination of clean fuel regulations. Poilievre argued that additional tax burdens on fuel not only impact drivers but also escalate costs across various sectors, leading to higher expenses on essential goods and services, particularly affecting rising grocery prices in Canada.

In response to inquiries about extending the excise tax holiday, a spokesperson for Finance Minister François-Philippe Champagne emphasized the government’s commitment to enhancing affordability. The spokesperson highlighted the government’s dedication to collaborating with provinces on initiatives that promote economic growth, competitiveness, and cost reduction amid the current global economic challenges.