Liberals plan to suspend fuel excise tax

Ottawa plans to temporarily suspend the fuel excise tax on gasoline, diesel and airplane fuel starting April 20 through Labour Day. The move is a fiscal relief measure aimed at offsetting higher energy prices driven by the war in Iran. It should ease near-term pressure on fuel and transportation costs, with potential modest disinflationary effects.

Analysis

Ottawa plans to temporarily suspend the fuel excise tax on gasoline, diesel and airplane fuel starting April 20 through Labour Day. The move is a fiscal relief measure aimed at offsetting higher energy prices driven by the war in Iran. It should ease near-term pressure on fuel and transportation costs, with potential modest disinflationary effects.