Carney Suspends Gas Tax as Iran War Drives Up Energy Costs

Prime Minister Mark Carney said he will suspend a fuel excise tax until Labor Day weekend in response to gas prices that have shot up by about 45% in 2026, primarily driven by the Iran war.

Carney described the move as a “responsible, temporary measure” that will lower gas prices by 10 Canadian cents per liter and diesel by 4 Canadian cents. The cut, which begins April 20, will cost the federal treasury about C$2.4 billion ($1.7 billion), he said, adding the suspension will also apply to aircraft fuel.