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The Gas Tax Holiday Ends in 24 Days — Here's the Real Math on What You'll Save

  Published August 14, 2026 Ottawa's fuel excise tax suspension shuts off September 7. Here's what it's actually been worth at the pump, what changes the next morning, and who should plan a fill-up before Labour Day. The Countdown The federal fuel excise tax returns to full rate on September 8, 2026 — that's 24 days from today. Prices reset to their pre-April 20 rate the moment the clock hits midnight. If you've noticed gas feeling a little less painful since spring, that wasn't your imagination. On April 20, 2026, Ottawa suspended the federal fuel excise tax — 10 cents a litre off gasoline, 4 cents off diesel — as Middle East oil-supply disruptions pushed pump prices toward $2 a litre in some cities. The suspension, passed as part of Bill C-30, has been running for nearly four months. It ends September 7, inclusive. On September 8, the tax comes right back. What the holiday actually saved you The headline number — 10 cents a litre on gas — undersells it sligh...
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Canada’s Inflation Rebounds to 2.4% in December After Tax Holiday Effect Fades

Food prices were expected to rise on a year-over-year basis because December 2024 restaurant prices had been lowered by the temporary GST holiday that ended in early 2025. 

Canada’s annual inflation rate accelerated to 2.4% in December, coming in hotter than economists expected and marking a noticeable uptick from November’s 2.2%. The increase was driven largely by a “base‑year effect” tied to last year’s temporary federal GST/HST holiday, which had artificially lowered prices during the same period a year earlier.

With those discounts no longer part of the comparison, categories such as restaurant meals, alcohol, and children’s goods appeared more expensive on a year‑over‑year basis, pushing the headline inflation figure higher.

Despite the jump, underlying price pressures continued to ease. Key core inflation measures — which strip out volatile items — cooled for the third straight month, suggesting that broader inflation momentum is still slowing. Month‑to‑month, consumer prices actually fell by 0.2%, reflecting softer demand in areas like transportation and shelter.

Economists note that inflation remains close to the Bank of Canada’s 2% target, and the central bank is unlikely to adjust its policy path based on a single month’s data. Many analysts still expect inflation to dip below target later this year as the economy continues to cool.


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