FOR IMMEDIATE RELEASE

OTTAWA, Ontario — This afternoon, Finance Minister François-Philippe Champagne announced that the federal government will extend the temporary suspension of the federal fuel excise tax on gas and diesel, pushing the end date to January 31, 2027. The tax, which amounts to 10 cents per litre on gasoline and 4 cents per litre on diesel, was originally scheduled to resume on September 8.

Dan McTeague, President of Canadians for Affordable Energy, said that the move is insufficient.

“On the one hand, I’m glad that the gas tax isn’t coming back next week. That would have been a real hardship on working Canadians who are heading into the Fall already struggling with elevated fuel costs.” said McTeague.

“However,” he added, “The federal excise tax should be cancelled altogether. By pushing it off until January, the government adds further unpredictability to an already volatile market.”

“Furthermore,” said McTeague, “The relief that this suspension provides is a drop in the bucket when compared with all of the other taxes on fuel which we’re all paying.”

“Getting rid of the GST on gasoline and diesel, along with regulations like the so-called Clean Fuel Standard, would be a much more effective way to combat elevated fuel prices which are hitting Canadians so hard right now. Anything else is pure window-dressing.”

“Don’t forget,” McTeague added, “GST is calculated as a percent of the total cost. The higher the price of oil and gas, the more tax revenue Ottawa pulls in. That just isn’t right!”

According to McTeague, “This affects our whole economy, not just the cost of filling up your gas tank. Diesel – the life’s blood of the modern economy – is at an all time high in Canada right now. Whether we realize it or not, that is a cost we’re all paying, maybe not at the pump but at the grocery checkout line. The price of diesel, especially, drives up the price of groceries and other consumer goods.”

“Across this country, Canadians are struggling to put food on the table, and all of Ottawa’s fuel taxes are part of the reason.”

Canadians for Affordable Energy urges the federal government not just to suspend, but to cancel the federal excise tax on gasoline and diesel, as well as the multitude of fuel taxes and regulations that are making Canadian lives less affordable.

Canadians for Affordable Energy is a registered not-for-profit organization with more than 125,000 supporters nationwide. McTeague, a former Member of Parliament, has been predicting gas prices for more than 20 years. For more information, visit affordableenergy.ca.

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