Federal Fuel Tax Relief Extended Through January 2027: What Ottawa Drivers Should Know

Ottawa drivers will continue to receive federal fuel excise tax relief through January 31, 2027, following Royal Assent to Bill C-38, the Canadian Fuel Affordability Act. Finance Canada announced the extension on October 29, and Parliament’s bill record confirms it has become law.
The full suspension covers gasoline, diesel and aviation fuels. For road users, that continues the suspension of the usual federal excise charges of 10 cents per litre on gasoline and four cents per litre on diesel until the end of January.
From February 1 through March 31, 2027, the tax returns at half its regular rate: five cents per litre on gasoline and two cents on diesel. Full rates return April 1.
For Ottawa households budgeting for commuting and other driving, those are the dates to watch. The measure changes the federal tax component; it does not set a fixed pump price.
Sources: Finance Canada announcement, October 29; Parliament’s Bill C-38 record; legislative text.
