Ontario Premier Doug Ford is pushing Prime Minister Mark Carney to turn the federal gas tax suspension into a lasting policy. The request comes just weeks before the current tax break is set to expire, and it puts fresh pressure on Ottawa’s approach to fuel pricing. Drivers across Canada have been watching this issue closely since the pause was first announced.

Why Ford Wants a Permanent Gas Tax Suspension

Carney announced in April that the federal government would pause collection of the fuel excise tax on gasoline and diesel. The suspension was introduced as a direct response to rising gas prices affecting households nationwide. It was originally scheduled to last only until Labour Day.

That pause currently saves Canadians 10 cents per litre on regular gasoline. Diesel drivers, meanwhile, save four cents per litre under the same measure. For many families, these savings add up quickly, especially during long commutes or road trips.

Ford has now written directly to Carney asking for two possible outcomes. First, he wants the gas tax suspension extended until January 1, 2027. Alternatively, he is asking the federal government to make the suspension permanent altogether.

This isn’t the first time Ontario has taken this approach to fuel taxes. In fact, the province has a track record of using temporary relief measures before locking them in for good. That history shapes Ford’s current strategy.

Ontario’s History With Temporary Tax Cuts

Ontario first cut its own provincial gas tax rate by 5.7 cents back in 2022. The reduction was meant to be short-term, but the province repeatedly extended the deadline instead of letting it lapse. Consequently, drivers continued to benefit year after year.

Eventually, Ontario made that cut permanent last year. As a result, the provincial tax rate on gasoline now sits fixed at nine cents per litre. This shift shows a consistent pattern in how the province handles fuel tax policy.

Because of this precedent, Ford’s latest letter to Carney follows familiar territory. He has seen firsthand how a “temporary” measure can evolve into permanent relief. Therefore, he is applying the same logic to the federal tax pause.

Political Pressure Builds Around the Federal Gas Tax

Ford isn’t alone in calling for permanent action on fuel taxes. Federal Conservative Leader Pierre Poilievre has also urged the Liberal government to suspend the federal fuel excise tax. Additionally, he wants the GST removed from both gasoline and diesel purchases.

Poilievre has gone further than just tax suspension, however. He has called for the clean fuel standard to be permanently eliminated. He also wants the industrial carbon tax scrapped entirely, arguing both measures increase costs for consumers.

This combined pressure from provincial and federal conservative leaders creates a unified political front. Both Ford and Poilievre frame these tax measures as relief for everyday Canadians. Meanwhile, the Carney government has yet to signal whether it will extend the suspension beyond Labour Day.

The timing of Ford’s letter adds urgency to the debate. With the expiry date approaching quickly, businesses and drivers alike are waiting for clarity. Ultimately, the decision rests with Carney and his cabinet in the coming weeks.

What Happens When the Suspension Expires

If the gas tax suspension is allowed to lapse, prices at the pump would likely rise again. Drivers would lose the 10-cent savings on regular gasoline almost immediately. Diesel costs would also increase by four cents per litre once collection resumes.

For now, the federal government hasn’t confirmed its next move. However, the mounting pressure from Ontario and federal conservatives suggests this issue will remain in the headlines. Consequently, Canadians should expect more updates as the Labour Day deadline nears.

This is a developing story, and further details may emerge as the federal government responds to Ford’s request.