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.

Official text (opens in a new tab)

10 statements

Arnold Viersen, Peace River—Westlock

Conservative
“This bill to lower fuel taxes was a Conservative idea. The Liberals took a year to copy it. I wonder what other Conservative ideas they will use next.”
Official Hansard

Mr. Speaker, I noticed that the Liberals have been implementing the Conservative agenda, maybe at half speed, but this particular bill was definitely our idea. We are glad to see that maybe a year later after the fact, they are actually doing it. I am just wondering what other great ideas the Conservatives have had that the Liberals will be implementing soon.

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

Linked statement

“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.

Gérard Deltell, Louis-Saint-Laurent—Akiawenhrahk

Conservative
“The member praised removing the carbon tax on gas because it lowers food transportation costs. For ten years, his party attacked Conservatives for wanting the same thing. Now that his government has adopted our idea, I want to know if he supports removing all federal taxes on transportation.”
Official Hansard

Mr. Speaker, I would like to congratulate and thank my colleague for his speech, and I would like to remind the House that it will soon be two years since he was elected. He has been here for a year and a half. I was pleasantly surprised to hear him praise the elimination of carbon pricing on gas, saying that it had a direct impact on buying food, which has to be transported. I know that he has been here for a year and a half, but his current colleagues spent 10 years saying that it was appalling to attack carbon pricing and that we, the Conservatives, had zero respect for the environment. The opposite is true. Since he got off to a good start, since he applauded the fact that his government has done what we have been demanding for years, does he agree with our proposal to immediately abolish all federal taxes that affect transportation?

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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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.”
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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.

Melissa Lantsman, Thornhill

Conservative
“I support this bill because it pauses the federal fuel tax and gives Canadians some relief. Conservatives asked for this months ago. But the government must pay for this tax cut by cutting wasteful spending instead of adding to the deficit. The government also needs to scrap its clean fuel rules, which make gas more expensive.”
Official Hansard

Mr. Speaker, I will be splitting my time with the member for Battle River—Crowfoot. It is good to be back in the House doing the work that Canadians sent us here to do. I think everyone agrees that it has been a long summer for the Canadian economy, for our trade relationships and for families, especially for families watching their bills climb faster than their paycheques. For three months, the doors of this Parliament stayed closed while government members were unable to answer for any of it, some because they truly did not know what was going on and some because they simply do not see their role as being accountable in this place. Let me say it plainly. This sitting is overdue, this debate is overdue, this policy prescription is overdue and the people we represent right across the country who are being locked out of accountability deserve much better than this. Our approach to this session is very simple. When the government does something that helps Canadians, we will support it, and when it makes things worse, we will oppose it, as we always have, strongly and without apology. Today’s bill falls into that first category. This legislation would finally remove the federal excise tax on gasoline until January 31 and cut it in half until the end of March. That is real, although temporary, relief, and Conservatives will support it. However, I would ask the government to be honest about something: where the idea came from. We have been calling on exactly this since the spring. This is once again the government adopting a Conservative solution after insisting for months it was not at all necessary and after looking families in the face and saying no. We are pleased that the Liberals have come around, but we simply ask why on earth it too so long and, more importantly, why it stops here. It is worth remembering what the Prime Minister said before he had this job. In February 2025, he built his entire leadership pitch around fiscal discipline. He said, “spend less, invest more”, warning that Ottawa could not keep borrowing from the future to pay for today. Let me be clear. We are not opposed to this relief, as we have been asking for it since the spring, but relief and recklessness are not the same thing, and the difference is simple: find the money. Conservatives have identified $150 billion in savings from wasteful spending precisely so that Canadians can get relief without adding another dollar to the tab that their own kids will pay for. The government has not done the work. It simply added this tax measure onto a deficit it has already doubled, a deficit that has strangled families at home and that has made it less affordable to buy food, groceries and gas. The question is not whether to give Canadians relief. It is whether the Prime Minister still believes what he told Canadians before he had the job and whether “spend less, invest more” is just something one says to win an election, not something one does after it has already been won. Here is the other answer. This is the part we see very clearly and that I think Canadians ought to see very clearly, and it is where some in the House may be confused. It is what this bill tells us about the government’s real position. The government cut the excise tax, but it left the clean fuel standard in place. It left it completely untouched. That is not actually an oversight. It is a regulation that exists specifically to keep fuel expensive in this country, and it is by design. According to the Parliamentary Budget Officer, not just some newspaper article, it is already adding seven cents a litre and is set to climb to 17¢ by 2030. That is not real relief. It is not even temporary relief. It is policy by design to keep gas expensive in this country. I am sure I can continue when we resume after question period, but I want to end with this. The government wants Canadians to believe that it is fighting for cheaper gas. That simply is not true. It is protecting the one policy that guarantees gas gets more expensive in this country every single year, more expensive than the last. It cannot claim relief at the pump on one hand while holding the other hand on the tax that keeps prices high. If people take one thing from this debate, it should be this, because it is not a change in policy. It is a temporary relief measure for Canadians that we will absolutely support, of course.

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