Conservatives proposes eliminating tax on diesel sales until Canada Day

Conservative Leader Pierre Poilievre is proposing the elimination of federal taxes on diesel fuel to ensure Canada maintains affordable supplies of the fuel for the future. Currently, Canada produces enough diesel to meet national demand, but transportation issues leave certain regions reliant on U.S. imports. In April, when global fuel prices soared, the federal government temporarily suspended the fuel excise tax, which it plans to continue through the first quarter of 2027.

Poilievre suggests extending this suspension until Canada Day (July 1), with the full tax cut remaining in effect through July 1 of the following year, and removing the Goods and Services Tax (GST) from fuel purchases.

The leader argues that when farmers and truckers face higher costs, those expenses are ultimately passed onto consumers, so eliminating taxes on diesel would ultimately benefit all Canadians. Poilievre is also advocating for the scrapping of the federal industrial carbon tax and the Clean Fuel Standard, as he claims these measures add costs to diesel production and discourage new refinery investments.

The Conservatives propose excluding refineries from the federal impact assessment process, while still requiring them to comply with pollution controls, wastewater regulations, leak monitoring, and provincial environmental laws.

Poilievre envisions the plan expanding refining capacity, allowing refineries to process more Canadian crude, and building necessary transportation and storage infrastructure to supply every region. While the Prime Minister's office has not responded to a request for comment on Poilievre's proposals, the leader maintains that the primary focus should be on affordability.

He states that affordable fuel is crucial in combating poverty, supporting the middle class, and making Canada self-reliant. Poilievre emphasizes that he is not interested in phasing out Canadian oil and gas, but rather increasing production and reducing prices.