QUESTION PERIOD — Finance
Fuel Tax Relief
April 14, 2026
Senator Moreau, today Prime Minister Carney made an announcement that was, no doubt, welcome news for all Canadians. He announced that the Government of Canada will be temporarily reducing taxes on certain fuels to help make life more affordable for Canadians. Included in this announcement would be a reduction of taxes on aviation fuels, which would lower costs for Canadian air carriers. Most Canadian airlines have imposed a temporary fuel surcharge due to rising oil prices.
My question is this: Would the Government of Canada, via Transport Canada, speak to airlines to have them reduce an equivalent amount of tax savings on their fuel surcharge during this temporary tax relief so they will pass through savings to Canadian air passengers?
Thank you for your question. You’re underlining this morning’s announcement by the government, which is an important one. Of course, the government expects that companies that benefit from the measure will not simply capture the entire difference and will transfer a portion of this reduction to consumers.
Now, since the announcement was made this morning, I don’t think there has been a discussion between Transport Canada and the airlines, but I will certainly bring your suggestion to the attention of the transport minister to make sure those benefits go to Canadians directly and not only to corporations.
Thank you. Just for certainty, would the Government of Canada consider including a legislative requirement in any tax relief bill for airlines to reduce fuel surcharges equivalent to the tax reduction to avoid an airline benefiting from both the tax reduction and the fuel surcharge so that Canadian air travellers can indeed benefit from the savings?
You’re aware, Senator Quinn, that I cannot comment on future legislative projects of the government, but let me tell you that the suspension of the federal fuel excise tax is also aimed at easing business for Canadian companies by reducing operating costs for truckers and businesses in the food, agriculture, housing, construction and delivery sectors. With lower costs and greater stability, businesses can hire, build and export products abroad at the same time.
