Statement from the Canadian Energy Marketers Association on Government’s Decision to Extend the Excise Tax Pause

OTTAWA, Ontario, Sept. 02, 2026 (GLOBE NEWSWIRE) -- Today, Finance Minister François-Philippe Champagne announced that the current pause on the federal excise tax on gasoline and diesel will be extended until at least next year. In April, the Carney government temporarily removed the 10-cent federal excise tax on a litre of gas and four cents per litre on diesel, a move that was set to end on September 7.

The extension was cited as an affordability measure for Canadians amid international turmoil in the Middle East and geopolitical pressures with the United States. CEMA understands and supports the government’s objective of providing immediate relief to Canadians in response to financial pressures. Yet, this measure will continue to impose high unintended costs on many Canadians, like the wholesalers and retailers who supply fuel across Canada.

“We have been ringing the alarm bells to the government about this for months. Canada runs on fuel, yet the energy industry has been burdened again and again. Now, our small and medium-sized businesses are paying the price. They are essential to keeping people, goods, and services moving. They provide jobs, support Canadian families, and continue to provide essential services for Canadians,” said Peter Kilty, President and CEO of the Canadian Energy Marketers Association.

Fuel excise tax is paid upstream and embedded in the cost of product as it moves through the supply chain. As a result, a substantial volume of gasoline and diesel already in storage and transit will have been purchased with the tax included before the suspension takes effect.

Once market prices adjust to reflect a tax-free environment, those costs cannot be recovered, and those small businesses pay the price. For months, this policy has shifted the burden of a government decision onto the very businesses that act as tax collectors on behalf of the government.

CEMA is calling for immediate action to establish a transition mechanism, such as a rebate or credit, for federally taxed fuel inventory on hand as of the effective date of the suspension, to support the hardworking Canadians this policy burdens.

Media Contact

For more information or to set up an interview, please contact
Peter Kilty, President and Chief Executive Officer
The Canadian Energy Marketers Association (CEMA)
403-348-7477
Pkilty@cemaassociation.ca

About CEMA

The Canadian Energy Marketers Association (CEMA) is a national not-for-profit trade association representing the unique interests of its members. CEMA supports its members in growing and adapting their businesses in an ever-changing market while pursuing opportunities for greater innovation to improve environmental and sustainability impacts, as our industry does its part to work towards net-zero by 2050.

CEMA’s mission is to support and elevate Canada’s small and medium-sized energy marketers, who are responsible for nearly 100,000 direct and indirect jobs across the country and are deeply committed to ensuring that innovative energy products, including low-carbon transportation solutions, are readily available to Canadian consumers. Learn more about CEMA here.