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Federal government introduces bill to extend gas tax pause to January 2027

OTTAWA — The federal government introduced its promised bill to extend the federal gas tax pause for several more months.

Finance Minister François-Philippe Champagne introduced the legislation on Monday.

The bill is up for the first significant debate today and Champagne says the measure will help farmers, families and truckers.

The Liberals temporarily suspended the federal 10-cent-per-litre excise tax on April 14 after the U.S. war on Iran caused global fuel prices to spike.

Initially set to last until Labour Day, the government is extending the pause until the end of January, before setting it to five cents per litre until the end of March.

The Conservatives want it to be extended even longer than that and for the government to also lift the GST off gas purchases.

This report by The Canadian Press was first published Sept. 22, 2026.

Catherine Morrison, The Canadian Press