Canada Suspends Gas Tax as Prices Surge, Relief Starts April 20

Canada’s long-standing fuel tax, set at 10 cents per litre for gas since 1995 and four cents for diesel since 1987, will be temporarily suspended as prices rise sharply. Prime Minister Mark Carney announced the move in Ottawa after securing a majority through three byelection wins. The suspension begins April 20 and runs until Sept. 7, cutting about 10 cents per litre on regular gas and four cents on diesel. The decision follows a surge of over 40 cents per litre in some regions, linked to stalled shipments through the Strait of Hormuz since late February. Carney called the measure targeted and temporary as pressure grows on households. Conservative leader Pierre Poilievre said it is “not good enough,” proposing deeper cuts that could lower prices by 25 cents per litre and save families about $1,200, at a cost of $5.25 billion.