Conservatives proposed eliminating the tax on diesel sales until Canada – National Day

Conservative Leader Pierre Poilievre put forward a plan to cut federal taxes on diesel fuel and help ensure Canada has an affordable fuel supply in the future.

The Conservative Party says Canada already produces enough diesel to meet national needs, but transportation bottlenecks have left some regions dependent on US imports.

In April, as global fuel prices rose, Ottawa imposed a temporary suspension of federal fuel excise taxes. This suspension has been extended until January, and will levy 50 percent of the regular excise rate from February 1 to March 31, 2027.

Poilievre proposed eliminating all taxes on diesel sales at least until Canada Day by extending the full fuel tax cut until July 1 next year and removing GST from fuel purchases.

Get the latest national news

Get the latest Canadian news delivered to your inbox so you never miss a trending story.

“When farmers and truck drivers pay more, those prices are passed on to you,” Poilievre said Sunday at a gas station in suburban Ottawa.

“Why don’t we use oil to meet our people’s electricity needs? We should be energy independent, and you, Canadian families, should enjoy the price savings that comes with it.”

Poilievre also advocates eliminating all taxes on diesel production by permanently eliminating the federal industrial carbon tax and the Clean Fuel Standard, which he says increase the cost of diesel production and discourage new investment in refineries.

Conservatives want oil refineries excluded from the federal impact assessment process, arguing that this would not eliminate environmental protections. Refineries still have to follow federal regulations on pollution, wastewater, leaks and monitoring, as well as provincial environmental laws and permits, the party said.

The Conservatives say the overall plan will expand refining capacity, help refineries process more Canadian crude and build the transportation and storage infrastructure needed to supply each region.

Premier Mark Carney’s office did not immediately respond to a request for comment on Poilievre’s proposal.

When asked if he envisions Canada eventually moving away from diesel fuel, Poilievre said the focus should be on affordability.

“Affordable fuel is one of the most important pillars for eradicating poverty, enriching the middle class, and making our country independent,” he said.

“I don’t want to phase out Canadian oil and gas production. I want to produce more oil and gas at lower prices.”

&copy 2026 Canadian Press