The federal government is set to temporarily suspend the federal fuel excise tax on gas and diesel starting next week.
Prime Minister Mark Carney made the announcement in Ottawa on Tuesday, just hours after his government secured a majority through three byelection wins.
According to the federal government, the tax suspension is expected to reduce the cost of gas by 10 cents per litre on regular gas, and four cents on diesel.
The suspension will come into effect on April 20 and last until Sept. 7, and it comes as global oil prices remain volatile amid U.S.-Iran tensions.
Since the conflict began in late February, shipments along the Strait of Hormuz, a passage point for a fifth of the world’s energy, have largely been at a standstill. As a result, the average price of gas in Canada has surged by more than 40 cents per litre in certain regions.
Last week, Carney hinted his government was “looking at” ways to help as high gas prices persisted and amid growing pressure to help Canadians.
