NEWS RELEASE: Rising Gas Prices Show Canadians Need Permanent Gas Tax Relief

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The Canadian Taxpayers Federation is calling on Prime Minister Mark Carney to cancel his planned Sept. 8 fuel tax hike after gasoline prices rose 25.7 per cent in July compared to last year, according to Statistics Canada.

“Prices at the pump are still sky-high and Canadians can’t afford for Carney to make trips to the gas station more expensive in September,” said Gage Haubrich, CTF Prairie Director. “The federal government shouldn’t be making painfully high gas prices worse by charging taxes on top.”

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The federal government temporarily cut its fuel tax on gas and diesel in April. The government plans to hike its fuel tax back up to 10 cents per litre of gas and four cents per litre of diesel on Sept. 8, 2026.

Inflation increased to three per cent in July compared to last year. Higher gasoline prices were one of the largest factors contributing to the overall increase in inflation. Gas prices increased 25.7 per cent in July compared to last year.

The federal government’s fuel tax cut is currently saving drivers about $6 every time they fill up a sedan, about $7 for a minivan and about $10 for a pick-up truck.

Leger polling shows that 63 per cent of Canadians oppose the federal government hiking fuel taxes in September. Among those decided on the issue, 71 per cent of Canadians oppose the fuel tax increase.

“Carney needs to permanently cut the gas tax because Canadians can’t afford to pay more to fuel up their vehicles and also pay higher prices for everything that is trucked to stores,” Haubrich said. “Canadian families are having trouble affording the basics and Carney shouldn’t be leaving their wallets even emptier with fuel tax hikes.”

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For more information & interviews, call:

Gage Haubrich
CTF Prairie Director
Phone: 306.750.8757
Email: [email protected]
X (Twitter): @haubrich_g

The Canadian Taxpayers Federation is Canada’s leading non-partisan citizens’ advocacy group fighting for lower taxes, less waste and accountable government.
Founded in 1990, the CTF has seven offices across Canada.
The CTF is funded by free-will contributions that do not get tax receipts.

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