Liberals promise measure to lower gas prices by 10 cents per litre this summer

Prime Minister Mark Carney, with Minister of Finance Francois-Philippe Champagne and Minister of Energy and Natural Resources Tim Hodgson, takes part in a press conference on Parliament Hill in Ottawa April 14, 2026. Photo by Blair Gable /Postmedia

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OTTAWA — On the first day of his majority government, Prime Minister Mark Carney ripped part of a page from Pierre Poilievre’s policy book, announcing a summer reprieve on the federal gas excise tax.

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On Tuesday morning, Carney promised to pause the application of the federal excise tax on consumer and aviation fuels from April 20 to Labour Day on Sept. 7, saying that should reduce gas prices by $0.10 per litre and diesel by $0.04 per litre.

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Carney pointed the finger at the war with Iran as the reason why he was announcing the measure that is expected to cost $2.4 billion.

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“Fuel prices have increased sharply around the world, including right here in Canada, so we’re taking more action to help build that bridge over short term pressure,” Carney said.

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He said the measure was temporary and geared towards a period of the year when Canadians tend to travel more by road vehicle or plane.

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His announcement reprises part of a policy demand by Conservative Leader Pierre Poilievre, who called on the government at the beginning of the month to suspend a host of federal levies on gas and diesel — including the excise tax — until the end of the year.

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On Tuesday, Carney denied that his announcement was inspired by Poilievre but promised that he was open to hearing policy ideas from anywhere.

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“We’re open to ideas from anyone, certainly any deputies, ideas that could come from the Senate, and above all, ideas from Canadians, from stakeholders and others,” Carney said.

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Carney announced the new measure hours after the Liberals won three byelections that vaulted their seat count to 174 and secured them a majority government.

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During the announcement, Carney said he did not intend to call an election and promised to govern “humility” and “determination.”

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“I think, very clearly Canadians want government to govern, to take action on immediate concerns such as today, which is what we’re doing on affordability,” he said.

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More to come.

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