REACTION: Suspending the excise tax on gasoline must be made permanent, says the MEI

Montreal, April 14, 2026 – The Canadian government’s announcement regarding the suspension of the federal excise tax of 10 cents per litre of gasoline is a step in the right direction, but the government should make this measure permanent, argues the MEI.

“Taxpayers had not yet recovered from the inflation of the past few years, when the rapid increase in the price of gas came along and shrank their purchasing power even more,” says Gabriel Giguère, senior policy analyst at the MEI. “A temporary tax holiday only helps temporarily. If it were to make this reduction permanent, the government would be returning hundreds of dollars a year into families’ pocketbooks.”

The announced tax holiday will extend from Monday, April 20 to Labour Day on Monday, September 7.

This 10-cent reduction per litre will allow a family with a sedan such as a Toyota Camry to save $4.90 in excise taxes per tank of gas. Including the effect of sales taxes, this savings amounts to $5.63 per tank.

“With strong upward pressure on the cost of living, the Carney government should use the levers at its disposal to lower Canadians’ bills for good,” adds Mr. Giguère.

***

The MEI is an independent public policy think tank with offices in Montreal, Ottawa, and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.

— 30 —

Interview requests
Florence Plourde
Manager, Communications
Cell: 418-670-5939