Suspension of Fuel Excise Tax: April to September 2026
- Beginning April 20, 2026, Canada is temporarily suspending the federal fuel excise tax on gasoline, diesel, and aviation fuels. (canada.ca)
- The suspension lasts until September 7, 2026, offering savings at the pump: about 10¢/L for regular gasoline and 4¢/L for diesel. (canada.ca)
Transition from GST/HST Credit to Canada Groceries & Essentials Benefit
- The GST/HST credit will be rebranded and expanded into the Canada Groceries and Essentials Benefit starting July 3, 2026. (canada.ca)
- Eligible Canadians will get a one-time top-up payment on June 5, 2026, equal to 50% of their 2025-26 GST credit. (canada.ca)
- After July, ongoing quarterly payments will increase by 25% for five years. (canada.ca)
Who Benefits and How Much?
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More than 12 million Canadians will benefit from the enhanced benefit. (canada.ca)
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Example: A family of four might receive up to $1,890 in combined top-up + ongoing benefit in 2026; a single person could receive about $950. (canada.ca)
What You Should Do Now
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If you’re eligible, watch for the June 5 top-up payment, which doesn’t require additional application—if you already receive GST/HST credit, you’ll get this automatically. (canada.ca)
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Prepare for higher regular payments starting July 2026—this may affect your budgeting and may reduce your tax refund or increase monthly cash flow depending on circumstances.
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Keep fuel usage records if your job or business involves fuel costs (transport, travel). Suspension reduces operating costs for businesses; timing purchases or refueling may yield savings.
Strategic Insights
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For businesses heavily reliant on transportation or fuel, this suspension offers temporary relief. Plan fuel purchases accordingly and account for this change in cost forecasts.
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For individuals budgeting groceries and essentials, the combined top-up + increased benefit could meaningfully reduce strain—review household income estimates to anticipate benefits.
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Keep track of the end date for fuel tax suspension so you can adjust budgets once excise tax returns September 8, 2026.
Summary: These changes aim to deliver immediate relief at the pumps and at the grocery store, especially for low- and middle-income Canadians. Make sure you receive the benefits you’re eligible for, and use the suspension period strategically.