Business of Supply

A Conservative opposition day motion calling on the government to lower diesel costs, including removing federal taxes on diesel until July 2027 and expanding Canadian fuel production. Conservatives said record-high diesel prices, driven by federal taxes and rules that hinder energy projects, are hurting farmers, northern communities and grocery costs. Liberals said global factors are driving prices, pointed to tax relief they have already introduced, and argued the motion ignores Canada’s integrated refining ties with the United States. The Bloc Québécois members opposed cutting the gas tax, arguing funds should go to old age security instead, and raised concerns about government spending on a pipeline and the Alto train project. Green Party member Elizabeth May focused on foreign ownership of Canada’s oil sector and subsidies to foreign-owned projects, and exchanged views with Conservatives on processing raw materials in Canada.Written by AI from the debate. Updated .

Official text (opens in a new tab)

110 statements

Carol Anstey, Long Range Mountains

Conservative
“I want the government to adopt our plan to lower diesel prices. Canadians pay much more for diesel than other countries because of federal taxes and rules that hurt energy projects. We need to cut taxes on diesel and produce more fuel here in Canada to lower everyday costs.”
  • A repeated line

    “Including the industrial carbon tax and the clean fuel standard.”

    Said 10 times by 9 members since April 28.

    Every time it was said
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.

Marilyn Gladu, Sarnia—Lambton—Bkejwanong

Liberal
“World events mostly set fuel prices, and we cannot control that. But our bill takes taxes off fuel until next year to help people. Will the Conservatives vote for it?”
Official Hansard

Mr. Speaker, I would like to thank the member opposite for her advocacy for the citizens of Long Range Mountains. As she may know, I worked in the refining business for decades. Although there have been some supply chain increases, on the whole, the price of fuel is, as she said, greatly impacted by global situations, which we do not have a lot of control over and are sometimes hard to predict. Our government has introduced measures recognizing the affordability issues that Canadians are facing, and Bill C-38 would take the tax off fuels until next year. Can the member comment on whether the Conservatives will support these measures?

Carol Anstey, Long Range Mountains

Conservative
“The Liberals only take half measures on our ideas. They should support our motion to give Canadians real relief from high costs.”
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Official Hansard

Mr. Speaker, oftentimes, the Liberals like to take Conservative ideas and go part of the way, but they do not want to go all the way. I would suggest that they approve of our opposition day motion so we can provide real relief for Canadians. Instead of taking half measures on Conservative ideas, I would encourage them to support our opposition day motion, if they are really serious about the affordability crisis in this country.

Rob Morrison, Columbia—Kootenay—Southern Rockies

Conservative

Linked statement

“Diesel fuel costs over three dollars a litre in rural British Columbia. High fuel prices are hurting our loggers and farmers. I want to know how this motion will help them today, not a month from now.”
Official Hansard

Mr. Speaker, it is interesting. I stopped at a small gas station in rural B.C., and the diesel price was over three dollars a litre. We are struggling with our logging industry and our farmers. One farmer in Grasmere cannot afford his cattle. There is another farmer in Creston who has the largest asparagus farm in B.C. Diesel prices are tormenting them. How will this motion help them get through the tough times they are going through right now, not a month from now, but as of today?

Carol Anstey, Long Range Mountains

Conservative
“We need to cut all fuel taxes right now to help farmers. Their diesel costs are up 48% over the last two years, and they cannot afford it.”
Official Hansard

Mr. Speaker, I can certainly relate to those stories because I have farmers reaching out to me consistently, all the time. It would provide immediate relief if we eliminated all those taxes right now. They desperately need it. As I talked about in my speech today, when our farmers are paying a 48% increase from just two years ago on diesel, which is so much a part of their operations’ direct and indirect costs, they cannot sustain higher input costs. They are in real trouble and facing real risks. We are fighting for our farmers and want to provide immediate relief to them because we know they are struggling right now.

Kevin Lamoureux, Parliamentary Secretary to the Leader of the Government in the House of Commons

Liberal
“The Conservatives try to take credit for cutting fuel taxes, but our Prime Minister brought in that tax relief to help Canadians. Manitoba's premier did the same thing. I want the member opposite to agree that cutting these taxes is simply about helping people.”
Official Hansard

Mr. Speaker, at times the Conservatives need a reality check, quite frankly. At the end of the day, they like to take credit for the excise tax relief. I can tell the member opposite that the new Prime Minister, who was elected 18 months ago, recognized the importance of giving tax relief to Canadians. This is not the only government that has done that. Wab Kinew, the Premier of Manitoba, did it a number of years ago. The Conservatives say it is a Conservative idea, but in reality it was a good idea, and it was a good thing for the Prime Minister of Canada, after getting elected, to give that tax break, because we are trying to help Canadians. That is what it is all about. Would the member not agree that it is about helping Canadians?

Carol Anstey, Long Range Mountains

Conservative
“I fight for the people in my riding and across Canada. The Liberals only cut gas taxes because Conservatives pressured them to do it. We take credit for that, and we will keep fighting for Canadians.”
Official Hansard

Mr. Speaker, I do not think there is any misunderstanding about how much I advocate for the people in my riding and in this country. I find it a bit rich that the member opposite gets up and attacks me for fighting and advocating for Canadians. If we had not put the pressure on, absolutely the Liberals would not have cut the taxes on gas. Yes, we will take credit, and yes, we will continue to fight for Canadians.

Tamara Kronis, Nanaimo—Ladysmith

Conservative
“High fuel costs make groceries too expensive in coastal communities like mine. Cutting this fuel tax would help. I want the member to share what people in her community are saying about food costs.”
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Official Hansard

Mr. Speaker, the hon. member and I often reflect on the fact that we represent coastal ridings where it feels like we get hit with high fuel costs on the way to the grocery store, at the grocery store and on the way home from the grocery store. I wonder if the member could share a bit more about what she is hearing in her community, because if it is anything like mine, food affordability is a major issue right now, and this would really help.

Carol Anstey, Long Range Mountains

Conservative
“People in my riding live far apart in rural areas and have to drive long distances to see a doctor or buy goods. They have no other way to get around. That is why they need cheaper fuel.”
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Mr. Speaker, there are vast distances between the communities in Long Range Mountains, just as there is in the member’s riding, where places are rural and remote. In order for people to get to their medical appointments or get the goods and services they need, they have to travel long distances and have no alternatives. That is why this is especially important for the constituents we represent.

David Bexte, Bow River

Conservative
“I want the House to pass this motion to cut fuel costs. High diesel prices are hurting farmers and driving up the price of groceries. We need to remove all federal taxes on diesel until at least July 2027, cancel clean fuel rules, and make it easier to build refineries and pipelines in Canada.”
Official Hansard

Mr. Speaker, I thank my colleague, the member for Long Range Mountains, for sharing her time with me. I truly appreciated the words she had to share with the House. They were fantastic. It is always an honour to rise on behalf of the people of Bow River. During the debate on Bill C-38, I invited the Prime Minister to Bow River. I asked him to stand in a field in southern Alberta at 10 o’clock at night, beside a farmer and his son facing the rain. That invitation still stands, even though the harvest is wrapping up in southern Alberta. It is probably the most expensive harvest these farmers have faced in their entire lifetime. At this time of year, the work on our farms does not end when the sun goes down. The crop still has to come off, trucks still have to run and the livestock still has to be fed. The harvest is when a family finds out what a year of work will bring. The seed has been paid for, the fertilizer has gone on the ground and the machinery payments keep coming, and now the family has to bring the crop home. They cannot leave the crop standing until diesel gets cheaper. They cannot ask the weather to wait while Ottawa makes up its mind. It is the harvest. A modern combine burns 60 to 80 litres of diesel an hour. Harvest days run 12 hours or more. That is 800 litres a day for one machine on one farm in one day. Diesel in this country now averages about $2.60 a litre, and it has hit record highs for weeks. It should not cost this much to fuel the country with the fourth-largest oil reserves on earth. Canada should have the most affordable diesel in the world. The government will point overseas, at the geopolitical and the Strait of Hormuz. Oh my. Wars and global turmoil affect fuel prices everywhere, but they do not explain the extra costs Canadians have to bear. Canadian diesel is now 24¢ a litre more than the American average and 31¢ a litre more than the global average. A wheat farmer in Montana, just a short drive south of Taber, Alberta, sells into the same world market as my neighbours, but an Alberta farmer is paying 24¢ a litre more for diesel. Before any seed is in the ground, our farmers are already starting the season at a competitive disadvantage. Canadian farmers are paying more for fuel than their competitors in the United States and other markets for three main reasons. These are high taxes, a weak Canadian dollar and an overreliance on American refineries. That is why I support this motion and our emergency fuel relief action plan. At the end of September, the national diesel price was around $2.60 a litre. For a farmer, this is a bill that grows with every hour the combine runs. The Grain Growers of Canada has put that cost into terms this House should understand. One large combine burning 70 litres an hour and working eight hours a day for 30 days, with bulk diesel rising from $1.10 to $2 a litre, has added to the harvest a bill of more than $15,000. This is the increase for one machine. It is not the increase for the tractor pulling the grain cart, it is not for the trucks hauling to the elevator and it is not for the truck delivering fuel. That money could pay down the operating loan. It could replace worn tires. It could help carry the farm through the winter. Instead, it goes into the fuel tank. From the fuel tank, it goes into government coffers. A farmer can work longer hours, but a farmer cannot bargain with an empty tank. This motion is not just for our farmers. It is for every Canadian family that sits down at the dinner table each night. Think about a loaf of bread. Before it reaches the shelf, someone has to grow the wheat, someone has to harvest it, someone has to haul it to be milled, the flour must reach the bakery and the bread must reach the store. Each of those trips requires fuel. The same is true of potatoes, corn, vegetables, meat and the feed that keeps livestock growing. Every step carries tax. The last stop is the family at the till. By the time that food reaches the checkout, the family buying it is paying the compounded cost of every tax along the way. The government cannot claim to care about food affordability and grocery prices by sending Canadians a few hundred dollars each year and ignoring what is driving those prices higher. It is the fuel for the farmers, truckers and businesses that produce and deliver our food. Parents feel it every week. They put groceries back at the till. They buy less meat. They skip fresh fruit. The Conservatives are not asking for anything complicated. Our emergency fuel relief plan has two parts. The first part would save Canadians money today. We would take every federal tax off diesel sales until at least Canada Day. That means extending the full excise tax cut until July 1, 2027, and taking off the GST. The government announced plans to keep the excise tax off only until January 31, 2027, and half the tax would return in February. The full tax would return on April 1, April Fool’s Day, just as farmers are preparing for another growing season. Why bring the tax back just as the seeding bills start to arrive? It only goes to show that the government does not keep farmers in mind when it drafts policy and, by extension, it does not keep Canadians in mind. Farmers plan their year in the winter. They sit down with their families and then with their bank and work through the numbers before a single seed goes into the ground. They need to know what fuel will cost, because uncertainty at the pump becomes uncertainty on the entire farm. We would also take the tax out of making diesel, permanently scrap the federal industrial carbon tax and permanently scrap the clean fuel regulations. According to Environment and Climate Change Canada’s projections, and as reported by the Parliamentary Budget Officer, the clean fuel regulations are projected to add up to 16¢ per litre to diesel and 17¢ per litre to gasoline by 2030. That is not small. Natural Resources Canada’s agriculture sector energy use analysis indicates that 2023 fuel use on Canadian farms was roughly 3.8 billion litres of diesel and 1.5 billion litres of gasoline. That consumption would mean $613 million in additional diesel costs and another $254 million in gasoline costs for the agriculture sector alone. Altogether, that is nearly $870 million added in annual fuel costs. These are costs that farmers cannot simply absorb and that ultimately work their way through the entire food supply chain. That alone more than wipes out the $600-million benefit seen by increased canola sales. The second part of our motion today is about fuelling our country at home. Canadian workers should be turning Canadian oil into Canadian fuel. Instead, we rely too much on American refineries. We pay for that diesel in American dollars, and with a low Canadian dollar, every one of those litres costs more. We need to create shovel-ready zones and prepermit land for refineries, pipelines, rail and storage. A company that follows every safety and environmental rule should know it can build before even applying. We should let companies deduct 100% of their investment in the first year in new refineries, refinery expansions, pipelines, rail, diesel and crude storage and the equipment to run the oil through those plants. The Conservatives call on the government to build a strategic reserve for refined fuel. Today, Canada keeps no national emergency reserve. That is a problem, especially in a global crisis. The goal is clear. Boost Canadian diesel production to one million barrels a day, give every Canadian business and every Canadian family access to affordable Canadian diesel and close the price gap with the United States within five years. This comes back to two kitchen tables. At one table, a farm family is working through the bills. The farmers have had a long day in the field and the numbers are bigger than they have ever been before. At the other table, a family is working through a grocery receipt. That family is deciding what needs to be left off next week’s list because the bills are higher than they have ever been before. The families might live hundreds of kilometres apart, but the relationship between the two cannot be ignored. The cost of fuel hits both of them. We should not ask either family to accept another speech about affordability without action to follow it. The Liberal government’s actions have fallen short. They have made matters worse for Canadian families. Today, members have a choice. They can call on the government to extend tax relief. They can support making fuel easier to produce, store and move. They can stand with the people who grow our food and the people trying to afford it. The crop will not wait and the bills will not wait, and neither should this House. I urge all members to support this motion.

Kevin Lamoureux, Parliamentary Secretary to the Leader of the Government in the House of Commons

Liberal
“The Prime Minister understands the economy. Over the last 18 months, we removed the carbon tax on gas and are now cutting the fuel tax to save people money. These changes must be done carefully. I want the member to share his thoughts on this.”
Official Hansard

Mr. Speaker, the Prime Minister was born in the Northwest Territories and grew up in Edmonton. He understands the importance of building a stronger and healthier economy. We can look at the number of initiatives that have taken place over the last 18 months. When we take a look at those initiatives, the one I would highlight today is getting rid of the carbon tax on gasoline and now reducing the excise tax. These are substantial savings for Canadians at a time when affordability is such an important issue. When we have policies of this nature, they need to be done in a measured way. I wonder if the member could provide his thoughts on that issue and do a comparison—

David Bexte, Bow River

Conservative
“Bad policies should be removed, not just adjusted. The Prime Minister does not understand how hard it is for normal families to pay for things right now. We need full tax cuts, not small ones.”
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Official Hansard

Mr. Speaker, I would have to say there is no such thing as a measured way with unreasonable policies. We get them out of the way. If they are bad policies, we put in good policies. Whether the Prime Minister has spent some of his life in Alberta or not, I do not think there is a direct connection between that and the understanding of what the lives of a common person and a common family on a limited budget are like today, with the costs increasing day after day. Limited tax relief is not the answer. Full tax relief is the answer.

Tamara Kronis, Nanaimo—Ladysmith

Conservative
“Conservatives want to lower diesel prices completely, while Liberals only want small changes. High fuel costs made this harvest very expensive. I want the member to explain how that raises grocery prices across Canada.”
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Official Hansard

Mr. Speaker, the last question highlighted the difference between the Conservatives’ approach to this issue and the Liberals’ approach to this issue. They are talking about “measured”, and we are talking about making a substantial difference in Canadians’ lives by removing the entirety of everything the government can control in terms of the price of diesel. The member talked about the most expensive harvest he has ever seen. I am wondering if he could talk about the impact of that on our food prices at the grocery store in the rest of Canada.

David Bexte, Bow River

Conservative
“Fuel taxes add up at every step of getting goods to market. This costs families and farmers thousands of dollars a year. These taxes hurt our economy and make life more expensive.”
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Mr. Speaker, my esteemed colleague always has a great perspective on the world. The cost cannot be underestimated, and it is so easy to do, because it comes in what seems like small bits, but collectively and adding it up, it compounds into a massive impact on the budget of families and farmers. It is thousands and thousands of dollars in a year coming out of a budget and going to taxes. Thousands and thousands of dollars go into the system for compounding taxes that are seen at every step of the supply chain. That money does not contribute to a good economy. It is not additive. It is a burden on our society, it is a burden on the people and it just makes life more expensive.

Kevin Lamoureux, Parliamentary Secretary to the Leader of the Government in the House of Commons

Liberal
“I want the member to clarify his party's position. Does the Conservative Party believe there should be no taxes at all on diesel or gasoline?”
Official Hansard

Mr. Speaker, I am wondering if the member can then provide clarification. Based on that question and his answer, is the Conservative Party of Canada’s position that there should be no form of taxation on diesel or gasoline?

David Bexte, Bow River

Conservative
“In a perfect world, there would be no taxes at all. But in the real world, we should have a much smaller government and cut taxes as low as possible.”
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Official Hansard

Mr. Speaker, that is an interesting question from the member across the way. Should there be no taxation? In an ideal world, there would be none at all. There would be no income tax, no sales tax, no excise tax and no GST. However, we do not live in a world like that. It is not ideal yet, and it may never be, but taxes should be cut to the absolute minimum possible with the smallest possible government to deliver the minimum viable product. A small government means small taxes.

Carol Anstey, Long Range Mountains

Conservative
“Can my colleague explain how the cost of diesel affects farmers and their farms?”
Official Hansard

Mr. Speaker, I wonder if my colleague could articulate the direct, but also the indirect, costs to farmers of diesel and what that means to their farms. I know he knows the space very well.

David Bexte, Bow River

Conservative
“Farmers are paying thousands of dollars more every day for things like seed, feed, and shipping. A huge part of those rising costs is taxes.”
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Official Hansard

Mr. Speaker, it is about where I come from and what I live. The day-to-day experience of farmers is that every bill is more, and it is more by thousands of dollars, whether it is for the trucker delivering fertilizer, the fertilizer itself, the seed or the feed. It is all of it. Everything is more, and it is thousands of dollars per day, per month and per year. I cannot overestimate how much money gets consumed in taxes.

Claude Guay, Parliamentary Secretary to the Minister of Energy and Natural Resources

Liberal
“I support our bill to keep federal fuel taxes low and I oppose the Conservative motion. Foreign wars are driving up fuel prices, which hurts Canadian families. Our government cut fuel taxes and is helping build major energy projects to keep our supply secure. The Conservatives do not have a real plan.”
Official Hansard

Mr. Speaker, we all know that Canada cannot take energy security for granted. In recent years, global conflicts have caused major disruptions to the world’s energy supply. Russia’s invasion of Ukraine and the war in Iran have both had a significant impact on international energy markets. Events thousands of kilometres away drive up global fuel prices, which increases costs here in Canada. Gas and diesel are part of everyday life for millions of Canadians. Whether we commute to work, drive kids to school, go shopping, visit family, run businesses or operate farm equipment, transportation is integral to everyday life and essential to the Canadian economy. Rising gas and diesel prices have a direct impact on Canadians and put significant financial pressure on families. Canadians deserve to have a serious debate in the House of Commons on the causes of these rising costs and the solutions that will make a real impact. With their proposal, the Conservatives would have us believe that because Canada has oil sands reserves, all we need to do is stick a pipe in and diesel will come out the other end, and that is how we would solve the problem. Although we do have large reserves of bitumen, it needs to be processed before it can be extracted. It then has to be refined and transported. The situation in eastern Canada is different from the situation in western Canada. All of that means that there is no easy solution. At the end of the day, though, this issue raises two far simpler questions: One, how can we bring down costs for Canadians today? Two, how can we make Canada less vulnerable to future disruptions? I attended a meeting of the European Union’s energy ministers in Ireland. One of the major issues on the table was, of course, diesel supplies. The EU is dealing with high costs, but it is much more concerned about supply. All that to say, the government believes that Canadians need both: a reduction in current costs and greater energy security for the future. A responsible energy strategy requires both immediate action and long-term planning. They go hand in hand, unlike what we are seeing in the Conservatives’ motion. That is exactly the approach that our government is taking. Supporting Canadians at this time of high gas and diesel prices is a priority for our government. That is why we have taken action. To respond to these rising fuel prices, we reduced federal taxes on fuel by 28¢ a litre by suspending the federal tax on diesel and gas. More recently, we introduced a bill to extend that support until January 31, 2027, and then to partially reduce the tax until the end of March. These tax cuts will hep Canadians save at the pump. Of course, this support will not resolve all of the challenges facing global energy markets, since foreign conflicts continue to disrupt supply. However, it will provide real support to Canadians while we are working at the international level to resolve this problem. Last Friday, G7 leaders met to discuss the impact that the high price of diesel was having on their respective countries, including Canada. To address this problem, the G7 leaders agreed to coordinate the release of 100 million barrels of oil and diesel to respond to the pressures affecting global energy markets. Canada’s contribution to this effort involves increasing private sector production and making 23.6 million barrels of Canadian crude oil available to global markets. I would also remind the House that this crude oil needs to be processed into diesel. Canada is also contributing to this effort by producing more diesel and other products at its own refineries. In fact, in April 2026, Canada’s diesel production increased by 16.3% over the previous year, reaching nearly 730,000 barrels per day, the highest level of production ever recorded in our country. It is important to mention that. Furthermore, during the same period, Canadian diesel exports rose by 64.7%. These measures have already paid off. The national price of diesel has fallen by more than four cents per litre since October 2. That said, more needs to be done to bring down the cost of living for Canadians, and our government is currently taking steps to ease this burden. While working to reduce the price of gas and diesel for Canadians, we are implementing various measures to leave more money in the pockets of Canadian families. For a family of four, the Canada groceries and essentials benefit will amount to nearly $1,900. That same family will receive the Canada child benefit, which will provide them with $7,000. Thanks to our personal income tax cut, this family will also save a further $840 this year, plus an additional $800 through Canada’s national school food program. Furthermore, this family could save up to $16,000 a year thanks to our government’s affordable child care program, as well as $730 a year through the Canadian dental care plan. These are all measures that the opposition, led by our Conservative friends, voted against. Affordability is central to our government’s work, and we are always going to strive to help families cope with the cost of living, including by lowering the price of diesel and gas. Along with measures to support Canadians, our government is taking steps to strengthen the energy security of Canada and its allies in order to improve our resilience to global energy supply disruptions. This means ensuring that our fuel transportation and storage infrastructure is up to the task and that our supply chains are reliable and resilient. Achieving this will require a regulatory framework that allows major projects to move forward with greater certainty and efficiency. Canadians have been clear: They want projects to happen faster. Opposition members are calling for the same thing. Investors want more certainty. Workers want to progress from the design phase to construction. That is why our government created the Major Projects Office, to clear the way for these major projects and fast-track decisions, because attracting investment depends not only on what Canada has, but also on its ability to get projects off the ground. Since the creation of the Major Projects Office, more than 15 projects in the energy, natural resources, and infrastructure sectors have benefited from streamlined processes, representing $126 billion in investment in our economy and the creation of more than 60,000 well-paying jobs. The need for that work has only become clearer as the world has changed. Countries around the world are rethinking supply chains. Markets are becoming less predictable. Allies are looking more closely at the resources and infrastructure that underpin their economy, and Canada must do the same. Energy security is essential to keeping energy and everyday living affordable in Canada. Reliable energy supplies can protect Canadians from sudden price shocks and can support businesses. Our energy future must focus on reliability, diversification, infrastructure investment and responsible development of our energy resources. By maintaining a secure and affordable energy system, we can strengthen our economy while improving the financial well-being of all Canadians. That is precisely why the government has made nation-building infrastructure a priority. Just last week, the Government of Canada designated the Pacific link as a project of national interest under the Building Canada Act. The project has the potential to move approximately one million additional barrels per day of Canadian oil to international markets and further diversify Canada’s export opportunities beyond a single customer. That decision reflects a simple reality: Canada needs more options, Canada needs more customers and Canada needs infrastructure capable of connecting our resources with both Canadian and international markets. The question today is not whether Canada should build major energy projects. The answer to that is a clear yes, and more importantly, the government is taking concrete steps to get them built. The Pacific link advanced not because someone announced a target. It advanced because government, industry and partners came together to begin the work of turning an idea into a project. That is how things get built: not through wish lists but through planning, investment, consultation, engineering, construction and execution, which are all things that are lacking in the motion before us today. A major pipeline will strengthen the long-term energy security of both Canada and our allies. On that note, let me add that the Trans Mountain Corporation is advancing optimization projects that would increase TMX capacity by about 360,000 barrels of oil per day. These projects will support Canada’s diversification efforts, increase our resilience and strengthen energy security globally. Energy security, however, also includes a range of energy types and projects. In September 2025, following the successful opening of LNG Canada phase one, our government referred LNG Canada phase two to the Major Projects Office. In September 2025, LNG Canada phase two expanded LNG Canada’s facility to double production from the current 14 million tonnes per year to a total of 28 million tonnes per year. This project will deliver low-carbon-intensity Canadian energy to the global market, helping diversify Canada’s trading partners, particularly in Asia and Europe. Just last week, the private sector proponents of this project announced a final investment decision: Major Projects Office referral, September 2025. Last week, there was a final investment decision, which actually brings $33 billion of investment into our country and strengthens the energy security of Canada and its allies. Thanks to this investment, thousands of jobs will be created as part of this project across the country, supporting our workers and our economy. In November 2025, our government referred the Ksi Lisims LNG project to the Major Projects Office. It is a proposed floating natural gas liquefaction, production, storage and offloading facility with a marine terminal located on the north coast of British Columbia. This project represents a $30-billion investment into Canada, and once built would operate as one of the most low-carbon facilities of this kind in the world. Since then, in May and June 2026, Ksi Lisims signed supply agreements with German purchasers for millions of tonnes per year of LNG supply. One of the purchasers, the Uniper utility, said, “Canada helps diversify Europe’s energy supply and strengthens resilience against future disruptions.” Further, the approval of the natural gas Sunrise expansion project, in partnership with 38 first nations, is also key to our objective of strengthening Canada’s energy security. It will add $3.3 billion to Canada’s economy annually and generate over $700 million in tax revenue, which we use for roads, hospitals and schools in B.C. At peak construction, it will create over 2,500 jobs to support Canadian communities. This approval, which was done in under two years, is part of our work to make Canada a clean and conventional energy superpower. In August of this year, our government announced, alongside the provinces of Quebec and Newfoundland and Labrador, the largest clean energy investment in North American history, at nearly $70 billion, to generate 14,000 megawatts of renewable power through the Churchill Falls and Gull Island hydroelectricity projects. The energy generated from these projects will be enough to power all the homes in Montreal, Vancouver and Toronto combined, while supporting 23,000 jobs and contributing $31 billion to Canada’s GDP. These investments are about ensuring Canada is better prepared for future disruption. We are now expanding our approach by streamlining the review of all projects in Canada. Our government made more progress than any other in history by signing one project, one review agreements with provinces to reduce duplication between federal and provincial permitting processes. We are now implementing one project, one review, one year through the building Canada strong act, Bill C-39. This bill, currently before the House of Commons, would strengthen our project review system by providing all required permits, not less, within a single year. This improvement would significantly quicken our permitting system, which has for too long been seen as discouraging investment in Canada. These improvements would be made while maintaining strong environmental standards and a robust consultation process with indigenous people, in full respect of indigenous people’s constitutional rights. Our government will always strive to build partnerships with first nations, Métis and Inuit, which is why one of our first acts in office was to double the indigenous loan guarantee program and support indigenous equity in major projects. Our government is pursuing both tracks at the same time: affordability measures for Canadians today and infrastructure that strengthens Canada’s resilience tomorrow. Now, that is a plan. Our government has been focused on both objectives in the extension of the federal fuel tax relief and by advancing the infrastructure that will strengthen Canada’s energy security over the long term. The challenges facing Canadians are happening now, and that is why the government acted when fuel prices began rising earlier this year. Canadians are asking for results. We all agree on that. They want relief from high costs. They want reliable fuel support. They want confidence that Canada will be better prepared when the next disruption comes, and it will. The government is acting on both fronts. It has delivered fuel tax relief and is working to strengthen domestic supply chains. It is advancing infrastructure that will make Canada more resilient in the years ahead. We can make diesel more affordable. We can make Canada more secure. We can do both without pretending that Canada alone controls the global price of diesel. This is the practical approach Canadians expect.

Anna Roberts, King—Vaughan

Conservative
“Farmers in my area are hurting from high diesel fuel prices. I want the member to explain how this policy will affect their growing season.”
Official Hansard

Mr. Speaker, we went from a swampland to the salad bowl of Canada. We have over 125 farmers in the Holland Marsh. They farm 7,000 acres. At Eek Farms, they are commercial third-generation farmers. They are feeling the impact of the diesel prices. Can my hon. colleague please explain to the farmers of my community how this will impact their growing season?

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