Ottawa Temporarily Suspending Federal Fuel Excise Tax

Prime Minister Mark Carney (CPAC)

The federal government is temporarily suspending the fuel excise tax to help Canadians with the rising cost of gas and diesel.

Prime Minister Mark Carney says the break will be in effect from next week until Labour Day.

That will mean a reduction of 10 cents a litre on gasoline, and 4 cents a litre on diesel fuel. He says Ottawa is removing the fuel excise tax on aviation fuels.

The provinces also charge taxes on fuel.

Furnace oil is exempt from the tax which was introduced in 1995, and there is no federal excise tax on natural gas or propane.