Canada to Temporarily Cut Fuel Taxes Amid Energy-Price Surge

By Paul Vieira

OTTAWA--Canada said Tuesday it would temporarily reduce fuel taxes as it tries to ease the financial squeeze households face from sharply higher energy prices.

Canadian Prime Minister Mark Carney said the tax reductions would take effect on April 20 and run until Labor Day. Gasoline prices have surged by over 30% since the start of military attacks by the U.S. and Israel, which have effectively frozen oil-tanker traffic in the Strait of Hormuz.

The cut to Canadian fuel-excise taxes, affecting gasoline and diesel, "is a responsible, temporary measure consistent with what it takes to build a stronger economy with sound fiscal management," Carney said at a press conference.

The relief at the gas pumps comes less than 24 hours after the Carney administration won all three special elections to fill vacancies in the federal legislature. Those victories, combined with recent defections to the Liberal caucus, has secured a majority mandate for Carney, who won a minority government about a year ago.

Write to Paul Vieira at [e-mail]

(END) Dow Jones Newswires

04-14-26 1031ET