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Extended Pause of Federal Fuel Excise Tax Has Albertans Pumped
CEMA says the pause helps consumers but leaves small fuel businesses covering costs on inventory bought with the tax included.
Finance Minister François-Philippe Champagne announced yesterday that the federal excise tax pause on gasoline and diesel will extend until at least next year as part of an affordability measure for Canadian families and businesses.
In April, the Carney government temporarily removed the 10-cent federal excise tax on gasoline and four cents per litre on diesel to provide relief for Canadians amid geopolitical pressures in the Middle East and the United States.
Canadian Energy Marketers Association President and CEO Peter Kilty stated the industry has been "burdened again and again," arguing the policy shifts financial burden onto businesses that act as tax collectors for the government.
These energy marketers support nearly 100,000 direct and indirect jobs across Canada while ensuring essential energy products remain available to consumers despite ongoing market pressures.
CEMA is calling for immediate action to establish a transition mechanism, such as a rebate or credit, for federally taxed fuel inventory purchased before the suspension takes effect to support affected businesses.