5 Things to Know Today: Gas Tax Holiday Extended to 2027, BoC Holds, TSX Rebounds

 

September 3, 2026

A big one for your wallet just landed: Ottawa is keeping the gas tax break alive well past Labour Day. Here's what else moved markets and money in Canada today.

1. Gas tax holiday extended to January 31, 2027

The federal fuel excise tax break that was set to expire on Labour Day (Sept. 7) isn't going anywhere. Finance Minister François-Philippe Champagne confirmed the suspension of the 10-cent-per-litre gasoline excise tax and 4-cent-per-litre diesel tax will now run until January 31, 2027, before being phased back in at half-rate from Feb. 1 to March 31 and fully restored April 1. Ottawa first introduced the break in April to offset oil-price shocks tied to the Iran war.

What it means for you: The scheduled Sept. 8 jump of 10–11 cents a litre is off the table for now. CAA pegged the national average at 172.9 cents/litre this week — budget around that level rather than the higher price many drivers had braced for.

2. Bank of Canada holds rate at 2.25% for a 7th straight decision

As widely expected, the Bank of Canada left its overnight rate unchanged at 2.25% on September 2 (Bank Rate 2.5%, deposit rate 2.20%). The central bank flagged that ongoing Middle East conflict and the new round of Canada-U.S. tariffs are keeping inflation risks tilted to the upside, even as it described the domestic recovery as "broadening." The next decision lands October 28.

What it means for you: Variable-rate mortgage and HELOC payments stay put for now. If you're renewing this year, don't count on a cut before late October at the earliest — and the Bank's inflation warning suggests that hike odds, not cut odds, are creeping back into the conversation.

3. TSX bounces back after its worst day since June

The S&P/TSX Composite rose 0.7% to close at 36,092 on September 2, clawing back some of Tuesday's 445-point (-1.23%) slide to a four-week low. All five major banks rallied on the BoC's hold — RBC +1.7%, TD +1.2%, BMO +2.2%, Scotiabank +1.9%, CIBC +2.4% — while gold miners rebounded as bullion prices firmed after a recent pullback.

What it means for you: If you hold bank stocks or a bank-heavy dividend ETF in your TFSA or RRSP, this was a good day. But with oil near multi-week highs and trade tension still simmering, expect more day-to-day swings through September.

4. Canada's Sept. 8 retaliation tariffs are still on track — 5 days out

Ottawa's counter-tariffs on more than 700 U.S. products — including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics — remain set to take effect at 12:01 a.m. on September 8. Rates range from 15% to 50% and are designed to match the U.S. Section 338 and 232 tariffs dollar for dollar on roughly $27.6 billion of American goods.

What it means for you: If you're stocking up on U.S.-made appliances, electronics, or pantry staples covered by the list, buying before September 8 could save you real money. Steel and aluminum duties are doubling to 50%, which will ripple into renovation and construction costs too.

5. Oil stays elevated on Strait of Hormuz tensions

Crude prices remain near multi-week highs — Brent above US$95 and WTI above US$91 as of this week — after fresh Iran-related disruptions near the Strait of Hormuz. The loonie has held fairly steady around 1.390 USD/CAD through the volatility, but a weaker dollar combined with high oil continues to add several cents per litre at the pump beyond taxes.

What it means for you: Even with the excise tax break extended, the underlying cost of crude — not just Ottawa's tax policy — is what will decide whether pump prices keep climbing this fall. Keep an eye on the Strait of Hormuz headlines, not just the Sept. 7 tax date.

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Data verified against Bank of Canada, Department of Finance Canada, CAA, and Trading Economics as of September 3, 2026. Rates and prices change quickly — always confirm current figures before making financial decisions.