Canadian Fuel Affordability Act

Bill C-38, Canadian Fuel Affordability Act · Second reading · now law Where it stands

What the law does

The law extends the temporary suspension of the federal fuel excise tax until January 31, 2027. Between February 1, 2027, and March 31, 2027, excise tax rates on fuels are set at 50% of their regular rates.

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7 statements

Tatiana Auguste, Terrebonne

Liberal
“I want the Conservatives to vote with us on our good ideas.”
Official Hansard

Mr. Speaker, I think our colleague needs to start voting with us on the good ideas we are coming up with on this side of the House. That would be a good place to start.

Abdelhaq Sari, Bourassa

Liberal
“I want the House to pass this bill quickly. It pauses the federal fuel tax to help drivers, families, and businesses save money on gas.”
  • A repeated line

    “We introduced the Canada groceries and essentials benefit.”

    Said 29 times by 19 members since April 23.

    Every time it was said
Official Hansard

Mr. Speaker, before I begin my speech, allow me to welcome everyone back to the House. It is a privilege for me to serve in this place and represent the people of my riding, Bourassa. As I said earlier, it is an honour for me to rise on behalf of the people of Bourassa to speak to Bill C-38, the Canadian fuel affordability act. I want to describe a scene that we see every morning. Before work, a mother stops at a gas station, looks up at the posted gas price, does a quick mental calculation and decides to spend $20. She does not spend a penny more because the rest of the money has to go toward feeding her children that week. No one sees it or hears about it, but this is something that happens thousands of times a day across the country. I see this scene playing out in my riding, whether it be with a personal support worker who leaves work at dawn after their night shift, a delivery person who crisscrosses the city from morning until night, a taxi driver who is calculating how many litres they will need that day or a small business owner whose pickup truck is their livelihood. For them, the price of gas is not an economic indicator, a statistic or a quantitative indicator. It is much more than that. It is a concern that they have from the time they get into their car every morning until the end of the day. We are living in a time of global instability. Supply disruptions in the Middle East are sending shockwaves to energy markets around the world, and it is our families who are paying the price at the pump. We cannot put an end to global conflicts, but we can choose not to let Canadians deal with the consequences of those conflicts alone. That is the choice that our government is making today. Bill C-38, introduced by the Minister of Finance and National Revenue, temporarily extends the federal fuel excise tax until January 31, 2027. Then from Februrary 1 to March 31, 2027, a half-rate will apply. This tax is 10¢ per litre of gasoline and 4¢ per litre of diesel. Suspending it will save up to about $5.75 on a 50-litre fill-up of regular gasoline and up to $2.30 on a fill-up of diesel. Some members across the way might say that is not much. However, we must consider what a few extra dollars each week mean to a mother, a delivery driver who fills up three times or more a week, or a small business that relies on several vehicles for its livelihood. For these people, it is not a small amount. It is a breath of fresh air. For someone who is out of breath, a bit of breathing room makes all the difference. The gradual return to the mid-range rate also offers something valuable: predictability. Families and businesses deserve to be able to plan ahead rather than face a sudden shock overnight. I am focusing on diesel because, when diesel is cheaper, it means the trucks that deliver food, fruits and vegetables cost less to operate. It means construction sites make progress faster. It means the agricultural sector can breathe a sigh of relief. Whether we are talking about trucking, food, agriculture, housing, construction, or delivery, this measure affects what we eat, where we live, and what we receive day after day. It is one of many steps we are taking. This is not the only step the government has taken to help Canadians. Bill C-38 does not stand alone, because affordability is not something can simply be declared; it must be built, one step at a time. Since July 1, 2025, nearly 22 million Canadians have been paying less tax thanks to the reduction of the first marginal rate from 15% to 14%. That means up to $420 per person, and up to $840 for a two-income family. We have eliminated the GST for first-time homebuyers purchasing a newly built home valued at up to $1 million and reduced it for new homes between $1 million and $1.5 million, because the dream of home ownership should not disappear within a single generation. We created the Canada groceries and essentials benefit. In the spring, a one-time top-up of $3.1 billion was paid to 12 million Canadians. Since July 2026, the benefit has been increased by 25% for five years and is paid quarterly so that the benefit arrives when the bills do. A family of four will receive up to $1,890 this year. It will receive $1,890 this year. I am repeating that because it is very important for the Canadians listening to us today. We want them to see this as some breathing room that can help them manage under the current circumstances. A single person, meanwhile, may receive up to $950. Upon taking office, the Prime Minister eliminated consumer carbon pricing in the provinces and territories where it applied, lowering the cost of gas by about 18¢ a litre in those regions and helping to curb inflation. We have made the national school food program permanent, feeding nearly 400,000 children every year and saving a family with two children about $800 a year. Children with full bellies in the morning are freed up to learn, stay in school and have the peace of mind they need to get the most out of their school day. There is no better investment for the country’s future than to invest in our young people and children, especially when it comes to helping them go to school with full bellies. With automatic benefit payments, up to 5.5 million low-income Canadians will finally receive what they are entitled to. In a neighbourhood like mine, Bourassa, so many families are losing out on their rights because of a lack of information or missing paperwork. This is not an administrative measure; it is a matter of dignity. Finally, we are strengthening competition in telecommunications and financial services so that Canadians can switch providers more easily. In conclusion, our vision is clear: We are building a stronger economy, diversifying our trade partnerships around the world, capitalizing on our strengths and creating better jobs and higher wages. However, building for tomorrow must never make us forget the challenges we face today. No one should be left behind. It is very important to include all Canadians in our strategy and to truly keep them in mind at all times when we develop measures like the one before us today. Let us come back to the mother gassing up at the pump. Thanks to Bill C-38, maybe she will no longer have to stop at $20. Maybe she can fill the tank. Maybe she can keep a few dollars for a pair of winter boots for her children or for a family outing she has been putting off for months. This bill will not fix everything. We know that. No one here is saying that. However, it is telling millions of Canadians something essential: We see them, we hear them and we are here for them. Relief only works if it is timely, so I invite all my colleagues from all parties to quickly support this bill.

Abdelhaq Sari, Bourassa

Liberal
“Our government has introduced short-term help for families and young people because citizens asked for it. I want to know why the opposition voted against this help.”
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    Relevance 46 of 100

    None of this reply addressed the specific point raised or the topic under debate.

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Official Hansard

Mr. Speaker, I would like to thank my colleague for keeping track of how long I have been here; I learn something new every day. I will circle back to my colleague’s question before I wrap up. What I have learned over the past year and a half is that our government has introduced quite a few measures to help families and young people. These are targeted, temporary, one-off measures. They are designed to address the concerns that citizens have raised with us. There is a question I would like to put to my colleague on the other side. We have been implementing measures to help families for a year and a half. However, as the new MP for Bourassa, I was very surprised to see MPs on the other side of the House voting against them. That said, I would like to thank the member once again for his work.

Karim Bardeesy, Parliamentary Secretary to the Minister of Industry

Liberal
“This bill targets a specific problem with fuel costs. I want the member to explain how it fits into the government's wider plan to lower the cost of living.”
Official Hansard

Mr. Speaker, I really enjoyed the speech by my colleague from Bourassa. As he pointed out, this bill is targeted and aims to address a very specific situation in today’s global context. Could he explain how this measure is in keeping with the government’s wider range of efforts, including those he himself had in mind to improve affordability and the cost of living?

Abdelhaq Sari, Bourassa

Liberal
“Our government gives money to families and feeds about 400,000 children at school. I am disappointed that the opposition votes against programs that help families.”
  • Reply to a debate question

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Official Hansard

Mr. Speaker, I want to thank my colleague for his question. It gives me another opportunity today to reiterate a number of measures introduced by our government. As I said earlier, a family of four can receive up to $1,890, and a single person, up to $950. This assistance is geared to families. As I mentioned earlier, something I hold very dear deserves reiterating. I am referring to the roughly 400,000 children a year who truly benefit from Canada’s national school food program. This is the kind of practical action I am talking about. There are others, but time prevents me from listing them all. What bothers me the most, however, is seeing people on the other side of the House vote against family-oriented measures aimed at helping Canadians. That disappoints me a lot.

Tim Watchorn, Les Pays-d'en-Haut

Liberal
“Many people in my area drive to work in heavy traffic. They would save money on gas under this bill. Can my colleague explain more about how this bill helps them save?”
Official Hansard

Mr. Speaker, as usual, my hon. colleague gave a very eloquent speech. As I was saying earlier when I asked the member for Saanich—Gulf Islands a question, many of my constituents who have to sit in traffic will be able to benefit from Bill C‑38 by saving money on gas. Many of my constituents work in my colleague’s riding. Can my colleague expand on how these people will be able to benefit from Bill C‑38 by saving money on gas?

Abdelhaq Sari, Bourassa

Liberal
“I want this bill to pass. Many workers in our ridings, like support workers and delivery drivers, cannot afford to fill their gas tanks. This bill gives them real help with fuel costs.”
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Official Hansard

Mr. Speaker, this gives me an opportunity to go back to the scenario I described at the beginning of my speech. Imagine a woman in my riding who is a personal support worker and who has just finished her shift at dawn. This woman decides to only pump 20 dollars’ worth of gas because she cannot afford to fill up her tank. Alternatively, imagine someone who makes a lot of deliveries and whose vehicle is their livelihood. There are people like that in my riding and in my colleague’s riding. We are trying to fix these issues so we can help these people day after day with concrete measures.

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