Federal gas tax cut expected to end Labour Day amid calls for an extension

The federal government's gasoline and diesel excise tax cut is set to end on Labour Day, with calls for an extension. As of Tuesday, the average cost for gas in Toronto is 182.9 cents per litre and $2.30 for diesel. Some experts predict these prices may rise further over the long weekend. The tax suspension, which began in April due to soaring gas prices from the Iran war, saves Canadians 10 cents per litre on regular gasoline and four cents per litre on diesel.

Ontario Premier Doug Ford and Conservative Leader Pierre Poilievre have both urged Prime Minister Mark Carney to extend the relief until at least January 1, 2027, or even make it permanent. The Canadian Taxpayers Federation estimates an average family filling their minivan weekly would save about $400 annually without the gas tax, while those filling their pick-up trucks weekly would save about $470 per year.

Finance Minister François-Philippe Champagne will announce the decision on Tuesday, stating it is part of the government's efforts to lower everyday costs for families and businesses.