OTTAWA — Prime Minister Mark Carney says Canada will suspend the excise fuel tax on gasoline and diesel until Labour Day as the Iran war sends energy costs surging.

Carney says the tax break will start on Monday and is expected to save Canadians 10 cents per litre of regular gasoline and four cents on a litre of diesel.

Speaking to reporters on Parliament Hill this morning, Carney says the tax relief is a “responsible, temporary measure” that will also help to reduce costs for truckers and businesses with high transportation costs.

The move stops short of a call from the Conservative party to cut taxes on gas and diesel for the rest of the year and permanently end other levies on energy production.

Gas prices have surged globally in recent months as conflict in the Middle East has throttled world oil prices.

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.

More coming.

Craig Lord, The Canadian Press