Conservative Leader Pierre Poilievre is urging Prime Minister Mark Carney to keep Canada’s fuel excise tax suspended until at least Canada Day 2027.
The federal government temporarily removed the tax from retail gasoline sales in April. The measure is scheduled to end on Sept. 7.
Poilievre renewed his demand in a letter to Carney on Sunday, citing rising fuel prices and continued pressure on household budgets.
He argued that Canadians are still facing high living costs and that restoring the tax could further increase expenses.
Gas prices rise across Canada
Poilievre pointed to recent food price data from the Organisation for Economic Co-operation and Development.
The report showed Canada recorded the highest food price increases among G7 countries, he said.
He also linked rising fuel costs to elevated global oil prices following the conflict involving Iran.
The Strait of Hormuz remains largely closed to cargo traffic because of security concerns, affecting global energy and shipping supplies.
West Texas Intermediate crude was trading near US$82 per barrel when the report was published.
That price was lower than its recent high of about US$83 but remained above the roughly US$75 level recorded a week earlier.
Meanwhile, gasoline prices have also increased across Canada.
The Canadian Automobile Association said the national average price for regular gasoline was about C$1.67 per litre.
That compared with C$1.64 a week earlier and C$1.33 during the same period last year.
The current fuel tax suspension saves motorists about 10 cents per litre on gasoline.
Drivers also save roughly four cents per litre on diesel while the measure remains in place.
Poilievre said restoring the tax would increase transportation costs and could affect prices for groceries and other goods.
Government weighs next steps
Poilievre has previously called on Carney to extend the suspension, including a similar request on Aug. 6.
He is also asking the government to remove all federal taxes on gasoline, arguing that such a move would provide greater relief for consumers.
According to Poilievre, lower fuel prices could also reduce transportation costs for groceries and construction materials.
The office of Finance Minister François-Philippe Champagne did not confirm whether the government is considering another extension.
A spokesperson instead referred to measures outlined in the 2025 budget and spring economic update aimed at addressing rising costs.
Ontario Premier Doug Ford has also called for the fuel excise tax suspension to continue.
Earlier this month, Ford asked Carney to extend the measure until at least Jan. 1 or consider making it permanent.
The federal excise tax is separate from the harmonized sales tax, which remains in effect.
Energy analyst Dan McTeague said restoring the federal excise tax could raise gasoline prices by roughly 10 to 11 cents per litre, depending on the region.
The final price motorists pay also depends on crude oil prices, market conditions, transportation costs and other taxes and charges.