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CA Legislation · Department of Finance Canada ·

Canada extends fuel excise tax suspension to January 2027 as Bill C-38 receives Royal Assent

Summary

The Canadian Fuel Affordability Act (Bill C-38) received Royal Assent on 29 October 2026, keeping the federal excise tax on gasoline, diesel and aviation fuels fully suspended until 31 January 2027. Half rates, such as 5 cents per litre on gasoline, apply from 1 February to 31 March 2027, and full rates return from 1 April 2027.

What it means for you

Transport, logistics and travel businesses in Canada, including Indian-owned operators, should plan pricing and excise compliance around the staged return of full rates.

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This summary is general information, not legal advice. The outcome of any case depends on its facts; read the source and take advice before acting.

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