A break at the pump that lasts all winter. The federal government is extending the suspension of its excise tax on gasoline and diesel until January 31, 2027 inclusive; it was due to end on September 7, according to the Government of Canada's September 8 announcement. The measure is federal, so it applies everywhere in Canada, Quebec included.
What this tax is. Normally, the federal excise tax is 10 cents a litre on gasoline and 4 cents a litre on diesel. Since April 20, 2026, its rate has been set to zero, explains the Department of Finance Canada. The tax is built into the fuel price at the pump: there is nothing for you to apply for, the reduction is already in the posted price.
The timeline, step by step. According to the schedule announced by the federal government:
- Until January 31, 2027: 0 cents a litre, the tax stays suspended.
- From February 1 to March 31, 2027: half the normal rate, which is 5 cents a litre on gasoline and 2 cents a litre on diesel.
- From April 1, 2027: back to the full rate, which is 10 cents for gasoline and 4 cents for diesel.
What it's worth. Every litre of gasoline carries 10 cents less in federal tax. The government also says gas prices dropped by 11 cents a litre on the very day the suspension took effect. Let's be honest, though: the pump price depends mostly on oil prices and changes from week to week. So the suspension doesn't guarantee cheap gas, only that it costs less than it would with the tax.
What doesn't change. Only the federal tax is affected. Provinces collect their own taxes on gasoline and diesel, and Quebec's keep applying as usual, as the same department points out.
Worth watching: a Quebec promise. The Parti Québécois, which will form Quebec's next government, is promising a cut to Quebec's own gas tax. For now that's an election commitment, not a rule in force: we break down its priorities for the first 100 days in a separate article.
Good to know for newcomers. Two useful habits. First, note the two dates when the tax goes back up: on February 1, 2027, it becomes 5 cents a litre of gasoline, then on April 1, 2027, it returns to 10 cents. If you're planning a long drive or you fuel a work vehicle, filling up just before those dates can be worth it. Second, there is no "gas tax refund" to claim: the saving happens directly at the pump. A text message or call offering to help you claim such a refund is a fraud, as we explain in our article on scams that impersonate the government.
