The Liberal government will suspend the excise fuel tax on gasoline and diesel until Labour Day as the Iran war sends energy costs surging, Prime Minister Mark Carney announced on Tuesday.

Carney said the tax break will start April 20 and is expected to save Canadians 10 cents per liter on regular gasoline and four cents on a liter of diesel.

Speaking to reporters on Parliament Hill, Carney said suspending the excise tax is a “responsible, temporary measure” that offers “real relief” to Canadian families.

A media statement about the move said it will also reduce costs for truckers and other businesses with heavy transportation costs.

Carney’s announcement stops short of a call from the Conservative party to cut the excise taxes and the GST on gas and diesel for the rest of the year and permanently end the clean fuel standard and industrial carbon tax.

Conservative Leader Pierre Poilievre contended that his proposal would have removed 25 cents from a liter of gasoline.

Gas prices have surged in Canada and worldwide in recent months as conflict in the Middle East constrains global oil shipments.

U.S. President Donald Trump said Monday the American military had begun a blockade of Iranian ports as part of his effort to force Tehran to open the Strait of Hormuz.

This report by The Canadian Press was first published April 14, 2026.