Official Hansard
moved: That, given that, (i) Canada’s diesel prices have hit record highs over the last several weeks, (ii) Canada’s diesel prices on September 28 were approximately 24 cents per litre higher than the United States average, and 31 cents a litre higher than the world average, showing that high prices cannot be explained by global factors alone, (iii) diesel powers the tractors that farm our food, and the trucks and trains that transport it, leading to bigger grocery bills for working Canadians, (iv) Canadians pay more than other countries for diesel because of high taxes, a low dollar and too much reliance on U.S. refineries, (v) Canada should have the most affordable diesel in the world, given that we have the fourth biggest oil reserves, the House, in the interest of saving Canadians money and fuelling our country at home, call on the government to adopt the Emergency Fuel Relief Plan that: (a) provides for emergency pre-permitting and tax relief for the construction of diesel infrastructure, such as refineries, pipelines, rail and storage; (b) eliminates all taxes on diesel consumption until at least Canada Day; and (c) permanently eliminates taxes on diesel production; and call on the government to set the goal of boosting Canadian diesel production to one million barrels per day, allowing every Canadian business and consumer access to Canadian diesel. She said: Mr. Speaker, I will be splitting my time today with my colleague and friend from Bow River. I rise today to speak to our Conservative opposition motion calling for an emergency fuel relief plan to cut diesel costs, increase Canadian fuel production and strengthen our ability to fuel ourselves at home. Across Canada, diesel keeps our economy moving. It powers the trucks that deliver groceries to our stores, the equipment farmers use to bring in the harvest, the fishing vessels on our coasts, forestry and mining operations, construction equipment and essential services in rural and northern communities. When diesel costs more, everything that depends on it costs more too. Families feel it in the price of groceries, building materials, transportation and everyday essentials. Canada’s geography makes these pressures even harder. Goods must travel long distances to reach rural communities. Residents often travel long distances for work, groceries and medical appointments. Higher fuel costs follow them throughout their daily lives and make almost everything more expensive. Higher fuel costs are not just a problem for the person standing at the pump. They show up in the cost of producing food, moving freight, building homes and keeping businesses open. In rural, northern and remote communities, those costs can be even harder to absorb. Many Canadians have no practical alternative to driving long distances, and businesses have no alternative to moving goods across our sprawling, vast geography. The national Canadian average of diesel was roughly $2.63 a litre, up roughly 38% in just three months. A week prior, it reached $2.74 a litre. In my riding, diesel in Deer Lake reached $2.77 a litre. There is no question that events overseas have contributed to higher fuel prices. Conflicts involving Iran and Ukraine have disrupted energy markets and put pressure on fuel supplies around the world. Those pressures are being felt around the world, yet they do not explain why Canadians are paying approximately 24¢ more per litre for diesel than Americans and 31¢ more than the world average. For fishermen filling their boats, farmers running their equipment and truckers delivering our groceries, that premium adds up, and those higher costs are ultimately passed on to families. Canada cannot control conflicts overseas, but we can control the taxes, regulations and barriers here at home that add to the cost of producing and supplying fuel in Canada. International markets affect everyone, but Canadians should not be paying an additional premium created by taxes and barriers that the Liberals imposed on Canada. From farmers on the Prairies, forestry workers in British Columbia and northern Ontario and truckers moving goods across Quebec to fishermen in Atlantic Canada and workers supplying remote communities in the north, affordable and reliable diesel is important in every area of this beautiful country. Canada’s energy policy must reflect what it takes to live, work and do business across a country as large and diverse as Canada. Fuel costs do not stop at the pump. They move through the supply chain and into the price of food, building materials and everyday necessities. A single piece of harvesting equipment can consume more than 1,100 dollars’ worth of diesel in a day. During harvest, those costs hit farmers especially hard. The Grain Growers of Canada estimates that fuel for one large machine could cost $15,000 more this harvest than last year. That is before counting other equipment. I see the impact of those costs in my own riding of Long Range Mountains. Michelle, a farmer from Cormack, wrote to my office about what those costs look like on the ground. In 2024, her farm spent $86,543 on diesel. This year, she expects that this cost will reach approximately $135,000. That is an increase of nearly 56% in just two years. That is only what her farm spends directly on fuel to keep its tractors and equipment running. Michelle explained that diesel is needed for everyday work, like preparing feed for their cows and cleaning the barns. It is also needed to spread manure and fertilizer; mow, bale and haul hay; and clear snow during the winter. On top of that, her farm pays higher freight charges and fuel surcharges on feed, fertilizer, supplies and equipment parts, as well as the cost of transporting the milk. As Michelle explained to me, rising fuel prices at this level are simply not sustainable for farms. For farmers like Michelle, diesel is essential and not an option. If the equipment does not run, the farm cannot operate, and if the truck does not move, she cannot transport her product. These pressures extend across our economy. Diesel powers construction equipment, mining and forestry operations, and the trucks and trains that move goods across the country. Higher operating costs ultimately add to household bills. This is why Canada’s energy security matters just as much as immediate relief at the pump. Threats from Washington to restrict diesel exports to Canada further underline the urgent need to strengthen our domestic refining, transportation, storage and supply. Whether that threat materializes or not, Canada needs to prepare before a disruption reaches our communities. We should not wait for the next supply disruption before asking whether Canada has enough refining capacity or whether we can move Canadian fuel when it is needed. A country with our energy resources should have the infrastructure and capacity to better protect Canadians before a crisis happens. Canada has the world’s fourth-largest crude oil reserves, yet parts of Canada remain heavily dependent on imported refined petroleum products, much of them coming from the United States. In 2025, Canada imported approximately 485,000 barrels per day of refined petroleum products. Nearly 80% of those imports came from the United States. For a country with our resources, workers and expertise, we should be doing more to produce and refine the fuel Canadians need here at home. For 11 years, Liberal antidevelopment laws like Bill C-69 and Bill C-48 have discouraged private investment and held back energy development. Instead of making it easier to build the infrastructure needed to move Canadian energy across Canada, Liberal federal policy has too often added another layer of uncertainty. Companies considering major investments need certainty. They need to know that projects can move through the approval process within reasonable timelines and that Canada is a competitive place to build and expand operations. Canada cannot become more self-reliant on fuel while continuing to impose barriers that make energy infrastructure harder and more expensive to build. The Liberal government knows that cutting taxes saves Canadians money. It needs to stop making excuses and implement our Conservative emergency fuel plan relief to cut diesel costs, build Canadian energy and put more money back in Canadians’ pockets. The Conservative plan is straightforward: lower costs now, increase Canadian fuel production and make Canada more resilient. Our motion calls on the government to take concrete measures to provide immediate relief, while increasing Canada’s ability to produce, refine and distribute the fuel Canadians depend upon. We should eliminate all federal taxes on diesel sales until at least Canada Day 2027 to give households and businesses relief that they can count on. That means removing federal taxes on diesel consumption, including the GST, so that farmers, truckers, fishermen and businesses can reduce their input costs and continue to provide Canadians with the food and goods and services that they rely upon. We should permanently eliminate federal taxes on diesel production, including the industrial carbon tax and the clean fuel standard, so that federal policy encourages affordable Canadian fuel production. We should increase Canadian diesel and other refined fuel production to one million barrels per day within five years, with the goal of meeting demand across Canada and eliminating the diesel price gap with the United States. We should create emergency permitting for diesel refineries, storage, and transportation infrastructure so that fuel can reach the people and businesses that depend upon it. That includes the pipelines, rail infrastructure and storage facilities needed to move fuel reliably between regions and get it to market. We should allow businesses to deduct 100% of investments in diesel production and distribution in the first year to encourage private investment in the capacity that Canada needs. If Canada wants new refineries, refinery expansion, storage facilities and transportation infrastructure, our tax and regulatory environment has to make Canada a competitive place to put that capital. We should also build a strategic refined petroleum reserve to protect Canadians during supply disruptions. Our plan would provide relief today while strengthening our ability to fuel ourselves here at home. More Canadian fuel, better transportation infrastructure and emergency supplies would put us in a stronger position to meet our needs and supply our allies. These measures provide Canadians the relief they need from higher costs, but they also empower us to produce more of the fuel we consume and move it reliably wherever it is needed. Canada cannot control every event in Washington or disruption in global markets, but we can control whether we make it easier or harder to produce and refine fuel here at home. Members of this House should consider the impact that higher diesel costs are having on Canadians in every region in this country. I encourage members from all parties to support this motion and help build a stronger, more affordable and more resilient Canada.
