Compliance
What Businesses Need to Know: Federal Fuel Excise Suspension & Airline Support Measures
Canada has temporarily suspended excise fuel taxes and introduced loan facilities for airlines—key developments for sectors with fuel-intensive operations.
By NomadicTax Research Team • 5-8 min read • June 9, 2026
## The policy changes at a glance
- The **federal fuel excise tax on gasoline and diesel** is suspended from **April 20 to September 7, 2026**, saving roughly **10 cents per litre on gasoline** and **4 cents per litre on diesel**. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/06/government-of-canada-introduces-targeted-support-to-help-canadas-airline-sector-weather-global-fuel-market-volatility.html?utm_source=openai))
- **Aviation fuels** are also exempted during the same period, with a relief of **4 cents per litre**. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/06/government-of-canada-introduces-targeted-support-to-help-canadas-airline-sector-weather-global-fuel-market-volatility.html?utm_source=openai))
- A **Liquidity for Airline Sector Resilience facility** will provide eligible Canadian airlines with **repayable loans up to CAD $150 million**, contingent on commitments like protecting jobs, maintaining operations in Canada, limiting executive compensation, and buying Canadian materials. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/06/government-of-canada-introduces-targeted-support-to-help-canadas-airline-sector-weather-global-fuel-market-volatility.html?utm_source=openai))
## Impact on businesses and travellers
- **Cost savings**: For road-transport, manufacturing, agribusinesses—transport costs will drop immediately due to lower fuel taxation.
- **Aviation relief**: airlines struggling with jet fuel price volatility get help—but must meet conditions. Pass-through savings may affect airfare pricing.
- **Compliance**: firms should carefully track fuel usage, invoices, and tax remittances to document low or zero excise tax during the suspension period. Perhaps different treatment for fuel loaded before/after April 19. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/06/government-of-canada-introduces-targeted-support-to-help-canadas-airline-sector-weather-global-fuel-market-volatility.html?utm_source=openai))
## Practical examples
- A trucking company using 50,000 L of diesel monthly: at 4 cents per litre excise relief, savings of **$2,000/month**, or **$8,000** over the full period (Apr-Sept).
- Airline purchasing large quantities of jet fuel: benefit from both excise tax removal and potential access to loan facility; obligations include remaining operational in Canada and limiting shareholder returns.
## Action steps for businesses
- Update fuel purchasing policies to ensure purchases during suspension obtain correct tax treatment.
- Keep detailed records of fuel receipts, usage dates, supplier invoices—especially to show when fuel was delivered or imported.
- Airlines consider applying for the resilience loan facility, ensuring their proposals satisfy conditions (Buy Canadian, job protection, etc.).
- Employers expect possible downstream effects on costs: energy, transport, product price adjustments.
## Opportunity & caution
- **Opportunity**: Firms can reduce operating expenses in transport and logistics, boost competitiveness. Those in aviation especially stand to benefit through both tax relief and liquidity support.
- **Caution**: The measures are **temporary and subject to eligibility conditions**; costs or supplies prior/after the suspension date might not qualify. Plan carefully.