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Federal pause on gasoline, diesel tax takes effect today, after Iran fuel price spike

Ottawa says drivers will save 10 cents per litre on regular gasoline as the temporary tax pause aims to offset higher energy costs.

  • On Monday, Ottawa's temporary suspension of federal fuel excise taxes took effect, offering Canadians relief amid surging energy costs from global tensions.
  • Prime Minister Mark Carney announced last week that the pause would last until Labour Day, citing rising costs as the war in Iran and Strait of Hormuz tensions drive global prices higher.
  • Drivers will likely save 10 cents per litre on regular gasoline and four cents on Diesel, a measure The Liberals estimate will cost roughly $2.4 billion.
  • Pump prices dropped sharply in Nova Scotia, where regular gasoline fell 11.5 cents to 167.2 cents per litre, while Diesel prices decreased 5.7 cents to 206.6 cents per litre.
  • The Conservatives argue the pause is insufficient, calling for an extension until year-end and demanding an end to clean-fuel standards and the industrial carbon tax.
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The federal reduction of 10¢ per litre on gasoline is now in effect.

·Montreal, Canada
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Winnipeg Free Press broke the news in Winnipeg, Canada on Monday, April 20, 2026.
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