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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 Drops to 1.8% as Tax Effects Fade and Prices Stabilize

 

Stable core inflation measures should give the Bank of Canada space to "play down its concern around higher energy prices" caused by the war in Iran, CIBC economist Katherine Judge said. 


A Shift Toward Price Stability

Canada’s annual inflation rate eased to 1.8% in February, marking a sharper-than-expected slowdown and bringing inflation below the Bank of Canada’s 2% target for the first time in months. 

Why Inflation Fell

Several factors contributed to the decline:

  • Base-year effects: Prices were unusually high last year after a federal sales tax holiday ended, making this year’s comparisons look softer. 
  • Cooling consumer prices: Excluding indirect taxes, the Consumer Price Index rose a modest 1.9% year over year.
  • Stable core inflation: Economists note that steady core inflation gives the Bank of Canada more room to ease concerns about energy-driven price pressures. 

What This Means for Canadians

With inflation dipping below 2%, households may feel some relief from rising costs, though the full impact will depend on how quickly price moderation spreads across categories like food, housing, and services. The Bank of Canada’s upcoming interest rate decisions will likely reflect this new data, potentially shifting toward a more accommodative stance if the trend continues.


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