Government of Canada reduces fuel costs and delivers direct affordability support to Canadians

WINDSOR, ON, April 24, 2026 /CNW/ - The global landscape is rapidly changing. In response, Canada's new government is focused on what it can control – building a stronger, more independent, more resilient economy. The government is working to give Canadians greater security, certainty, and a lower cost of living.

Today, the Honourable Arielle Kayabaga, Deputy Leader of the Government in the House of Commons, on behalf of the Honourable Steven MacKinnon, Minister of Transport and Leader of the Government in the House of Commons, highlighted the government's actions to make life more affordable for Canadians, including the temporary suspension of the federal fuel excise tax and the rollout of the Canada Groceries and Essentials Benefit.

Global conflict and ongoing supply disruptions in the Middle East are driving up fuel prices around the world. To make Canada more energy secure and less reliant on external factors, the government is advancing major projects to realize Canada's full potential in clean and conventional energy. As it builds for the long term, the government is also providing immediate relief to bring down costs for Canadians right now – including cutting taxes for 22 million Canadians, cancelling the consumer carbon tax, and protecting and expanding vital social programs.

The Government of Canada is suspending the full amount of the federal fuel excise tax on gasoline and diesel until September 7, 2026. This is expected to reduce Canadians' bills at the gas station by 10 cents per litre on regular gasoline and 4 cents per litre on diesel. The government also temporarily suspended the federal fuel excise tax on aviation fuels to help reduce operating costs for truckers and businesses in the food, agriculture, housing, construction, and delivery sectors.

These measures build on other actions to lower costs for Canadians, including the new Canada Groceries and Essentials Benefit. Eligible Canadians will receive a one-time GST/HST credit top-up on June 5, 2026, as part of the transition to the Canada Groceries and Essentials Benefit, which will replace the GST/HST credit in July 2026. The top-up will be equal to 50% of the GST/HST credit for the 2025-26 benefit year. Starting July 3, 2026, the Canada Groceries and Essentials Benefit will provide higher quarterly payment amounts while keeping the eligibility and structure of the GST/HST credit, with quarterly payments increasing by 25% for the next five years.

Together, the one-time and quarterly Canada Groceries and Essentials Benefit payments will provide ongoing financial support to more than 12 million recipients.

Canada's new government was elected to build a more resilient economy – an economy that creates good careers, strengthens sovereignty, and helps deliver a lower cost of living. Through immediate affordability measures and longer-term economic action, the government is moving with speed and ambition to build a country where all Canadians have greater certainty, security, and prosperity.

Quotes

"To support Canadians through current global pressures, our government is delivering timely, meaningful, and tangible relief at a time when it is needed most. By lowering fuel costs and offering this one-time payment we are helping with affordability for those who need it most."

– The Honourable Arielle Kayabaga, Deputy Leader of the Government in the House of Commons

Quick Facts

• The GST/HST credit will be renamed the Canada Groceries and Essentials Benefit on July 3, 2026.
• Examples of how the Canada Groceries and Essentials Benefit will be issued: 
• A family of four with a $40,000 in net income will receive a one-time top-up of $533 on June 5, plus an increase of $272 for the 2026-27 benefit year (total increase of $805).
• A single person with $25,000 in net income will receive a one-time top-up June 5 of $267 plus a longer-term increase of $136 for the 2026-27 benefit year (total increase of $402). 

Today's announcement builds on major initiatives to lower costs for Canadians, including:

• Cutting taxes for 22 million middle-class Canadians by lowering the first marginal personal income tax rate from 15% to 14% as of July 1, 2025, providing tax relief of up to $420 a year per person, or up to $840 a year for two-income families.
• Eliminating the Goods and Services Tax (GST) for first-time homebuyers on new homes up to $1 million and reducing the GST for first-time home buyers on new homes between $1 million and $1.5 million, to immediately make the goal of home ownership a reality for more Canadians, especially young families.
• Cancelling the federal consumer carbon tax effective April 1, 2025, directly helping Canadians save money at the pump. The government also removed the requirement for provinces and territories to have a consumer-facing carbon price as of that date. This has helped reduce gas prices in most provinces and territories by up to 18 cents per litre in comparison to 2024-25, lowering headline inflation.
• Launching the new Canada Groceries and Essentials Benefit, which provides a family of four up to $1,890 this year, and about $1,400 a year for the next four years; and a single person up to $950 this year, and about $700 a year for the next four years. The benefit will provide additional, significant support for more than 12 million Canadians.

Budget 2025 also outlined concrete action to ensure Canadians receive the support they deserve, including targeted measures to strengthen food security and household affordability:

• Making the National School Food Program permanent, providing school meals for up to 400,000 children each year, saving participating families with two children in school an estimated $800 annually on groceries.
• Introducing Automatic Federal Benefits, starting in the 2026 tax year, to ensure up to 5.5 million low-income Canadians automatically receive the benefits they qualify for by the 2028 tax year, including the Canada Groceries and Essentials Benefit and the Canada Child Benefit.
• Lowering costs and strengthening competition in essential services, including ambitious pro-competition measures in the telecom and financial sectors to reduce prices, make it easier for Canadians to switch providers, and lower banking and service fees.
• More information on Budget 2025 measures to tackle affordability.

Associated Links

• Backgrounder: Temporarily suspending the federal fuel excise tax

SOURCE Minister of Transport and Leader of the Government in the House of Commons

For more information (media only), please contact: Marie-Justine Torres, Press Secretary and Senior Communications Advisor, Office of the Leader of the Government in the House of Commons, 343-552-6797, [email protected]; Media Relations: Privy Council Office Telephone: [phone], [email protected]