Canadian Fuel Affordability Act

An Act to amend the Excise Tax Act (extension of the federal fuel excise tax relief)

Sponsor

Status

Report stage (House), as of Oct. 6, 2026

Subscribe to a feed (what's a feed?) of speeches and votes in the House related to Bill C-38.

Summary

This is from the published bill.

This enactment amends the Excise Tax Act to extend the temporary suspension of the federal fuel excise tax until January 31, 2027 and to temporarily set the excise tax rates on fuels to 50% of the regular rates for the period beginning on February 1, 2027 and ending on March 31, 2027.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-38s:

C-38 (2022) An Act to amend the Indian Act (new registration entitlements)
C-38 (2017) An Act to amend An Act to amend the Criminal Code (exploitation and trafficking in persons)
C-38 (2014) Law Appropriation Act No. 2, 2014-15
C-38 (2012) Law Jobs, Growth and Long-term Prosperity Act

Debate Summary

line drawing of robot

This is a computer-generated summary of the speeches below. Usually it’s accurate, but every now and then it’ll contain inaccuracies or total fabrications.

Bill C-38 extends the federal fuel excise tax suspension on gasoline, diesel, and aviation fuel until January 31, 2027. It proposes a 50% tax rate reduction through March 31, 2027, to provide cost relief to Canadians amidst global economic uncertainty and volatile fuel prices.

Liberal

  • Supports extending fuel tax relief: The Liberal party supports Bill C-38 to provide immediate financial relief at the pump, extending the suspension of the federal fuel excise tax to help families and businesses manage the rising cost of living.
  • Mitigating global economic instability: Members argue the bill is necessary to shield Canadians from volatile global fuel prices driven by international conflicts, supply chain disruptions, and new foreign tariffs that are beyond domestic control.
  • Relieving pressure on essential sectors: The party emphasizes that reduced fuel costs support vital industries like agriculture, trucking, and construction while providing essential relief to rural and northern residents who rely heavily on vehicles for daily life.
  • Implementing a gradual tax restoration: Liberals highlight the bill's responsible approach, which maintains a full tax suspension until early 2027 followed by a partial rate reduction to offer predictability and ease the transition for household budgets.

Conservative

  • Support for temporary relief: The party supports Bill C-38 because it provides immediate, temporary relief at the pumps for families and small businesses struggling with the high cost of living.
  • Criticism of phased tax hikes: Members criticize the bill as an insufficient half-measure, arguing that scheduling the return of the fuel tax in early 2027 fails to provide a long-term solution to the affordability crisis.
  • Demand for broader tax cuts: The party urges the government to extend the fuel tax holiday until at least Canada Day 2027 and completely remove all federal fuel taxes, including the GST, industrial carbon tax, and clean fuel regulations.

NDP

  • Opposes the fuel tax suspension: The party opposes Bill C-38, arguing that the fuel tax suspension fails to deliver promised savings to consumers and instead allows oil companies to absorb billions in taxpayer dollars.
  • Advocates for windfall profits tax: New Democrats propose a windfall profits tax on oil and gas giants, with the revenue returned to struggling Canadians as a more effective and targeted form of relief.
  • Calls for renewable energy investment: The party emphasizes that subsidizing fossil fuels creates an opportunity cost, urging the government to invest in cheaper, sustainable energy sources to lower long-term costs and meet climate targets.
  • Links energy to national sovereignty: Members argue that clean energy investments serve as vital security and industrial policies, reducing vulnerability to geopolitical energy manipulation and volatile global oil prices.

Bloc

  • Calls for committee study: Emphasizes the importance of studying the bill in committee to evaluate its effectiveness, hear from expert witnesses, and explore alternative measures.
  • Concerns over untargeted relief: Argues the measure provides broad relief to wealthy consumers who do not need it, rather than targeting support to the lowest-income households.
  • Skepticism on consumer savings: Warns that because fuel demand is inelastic, oil distributors and gas stations are likely to pocket the tax break instead of passing savings to consumers.
  • Prioritizing senior support: Criticizes the government for allocating $5.3 billion to this measure while previously claiming it could not afford to increase Old Age Security for seniors.

Green

  • Supports C-38 with misgivings: The party supports the bill but criticizes it as a temporary relief measure that adds to the federal deficit and risks destabilizing predictable funding for municipal public transit systems.
  • Advocates for tax fairness: May calls for systemic tax reform, including a wealth tax on billionaires and a financial transactions tax, to generate significant revenue for public services and provide relief to the middle class.
  • Imposing windfall profit taxes: The Green Party proposes taxing the excess profits of oil, gas, and grocery corporations to address corporate profiteering and help fund essential services like flood protection and firefighting.
  • Enhancing rural ground transportation: Emphasizing safety and equity, the party demands a reliable, affordable national bus and rail system to serve rural and remote Canadians who lack access to private vehicles.
Was this summary helpful and accurate?

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 10 p.m.

Liberal

Guillaume Deschênes-Thériault Liberal Madawaska—Restigouche, NB

Mr. Speaker, I am pleased to hear my colleague mention that, for once, the Conservatives will support a measure that will put money back in Canadians' pockets.

However, I cannot help but note some hypocrisy in my colleague's speech. She mentioned that affordability should not be simply a slogan. However, when we look at her voting record, we see that she voted against almost all of the measures that we put in place to help Canadians deal with the cost of living, including the tax cut for over 21 million Canadians, the school food program, which has become permanent, and affordable child care spaces, to name just a few.

Does my colleague not see a major discrepancy between her voting record and what she is saying this evening about the importance of affordability? How does she reconcile what she said in her speech with her past actions, with the way she voted in the House?

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 10 p.m.

Conservative

Shelby Kramp-Neuman Conservative Hastings—Lennox and Addington—Tyendinaga, ON

Mr. Speaker, here before all of us tonight, we have to recognize that our job is to advocate and work and fight for the Canadian people. The government, for the last 11 years, has continually been making promise after promise, announcement after announcement. We need to do significantly more doing and significantly less talking.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 10 p.m.

Conservative

Arnold Viersen Conservative Peace River—Westlock, AB

Mr. Speaker, I am wondering if the hon. member could reflect a little bit on the history of how we got to this place today and perhaps on the fact that the Liberals seem to be taking our good ideas and running with them. This particular bill would be another example of that. I am wondering if she could talk a little bit about the history of this idea of reducing the gas tax over the last couple of years.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 10 p.m.

Conservative

Shelby Kramp-Neuman Conservative Hastings—Lennox and Addington—Tyendinaga, ON

Mr. Speaker, I think, as the loyal opposition, that we should take this as a compliment. My father once taught me that one never has to worry about who gets the credit as long as the job is done. I think, in this case, it is very clear where the idea came from. Nonetheless, what is most important are the results and Canadians getting results at the gas pump.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 10:05 p.m.

Liberal

Guillaume Deschênes-Thériault Liberal Madawaska—Restigouche, NB

Mr. Speaker, in her response to my question, my colleague talked about the need for more doing and less talking. However, over the past year and a half, we have implemented meaningful measures. We have made Canada's national school food program permanent. We have lowered taxes for more than 21 million Canadians.

That is in addition to all the other measures we implemented in budget 2025 and the economic update. Still, when we rolled out these meaningful measures—not just empty words—to help put more money in Canadians' pockets, my colleague voted against them. I am just trying to square that with what we heard tonight.

I completely agree with her that we need to be there for ordinary folks, but how does she reconcile what she said tonight with her voting record?

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 10:05 p.m.

Conservative

Shelby Kramp-Neuman Conservative Hastings—Lennox and Addington—Tyendinaga, ON

Mr. Speaker, I would be happy to reconcile what I am suggesting tonight, and that is the fact that we need to get the government to stop spending. We need to get spending under control. The deficit has doubled from what the government inherited. We, as an opposition, have identified $150 billion in potential savings, roughly $10,000 for every Canadian. Instead of having money swallowed up by unnecessary spending, like spending money on consultants or the boondoggle that is the Alto project, perhaps the government needs to put its money where its mouth is and look after Canadians.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 10:05 p.m.

Conservative

Arnold Viersen Conservative Peace River—Westlock, AB

Mr. Speaker, this has been quite a debate this evening. I know that over the last number of years, we have watched the Liberals lay burden after burden upon Canadians, particularly with the deficit spending. We now see a reversal of a whole number of these things, whether it is this idea or some of the major project announcements that we have heard. I am just wondering if the member has seen a change in the rhetoric. I am just wondering if the member is seeing a change on the ground back home.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 10:05 p.m.

Conservative

Shelby Kramp-Neuman Conservative Hastings—Lennox and Addington—Tyendinaga, ON

Mr. Speaker, our support for this measure is very straightforward. When Parliament has an opportunity to leave more money in Canadians' pockets through lower fuel taxes, this measure is just a common-sense prerogative. I know, from people in Hastings—Lennox and Addington—Tyendinaga, that when I am at the grocery store, when I am out at different community events, the tone is consistent. The concern is consistent, that affordability is the number one issue and that we need to get this under control.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 10:05 p.m.

Conservative

Arnold Viersen Conservative Peace River—Westlock, AB

Mr. Speaker, this feels like déjà vu. It was not that long ago that we were here debating nearly the exact same issue as we are today.

Today, we have in front of us a bill. As opposition members, we get to propose ideas through opposition day motions, which are not necessarily binding upon the House or the government. Back in April, we were debating virtually the exact same thing. I would point out that the Liberals voted back in April against removing the tax on gas and diesel fuel. I reluctantly must compliment the Liberals on this bill.

Another thing about this bill is that it is quite brief, which is amazing for the Liberals. Generally, the Liberals say they are doing one thing, then come out with a bill that does three to five things; some of the things we like and some of the things we do not like. They have made it very easy to support this bill. Perhaps the bill is a day late and a dollar short, but nonetheless, it is a good bill.

This bill would remove the gas tax going forward past January. I think that is something that we have been calling for for a long time. This is an idea that the Conservatives put forward. What is becoming a trend in this Parliament is that we have the good ideas and the Liberal government steals those ideas, plagiarizes those ideas and implements those ideas. We will continue to do that. We will continue to propose good ideas that the government can then take and run with.

I just want to talk a bit about what this means for people who live in northern Alberta. The further away from Edmonton someone lives, the more their average driving per year happens to be. The average person in Enilda, which is a couple of hours north of where I live and about three and a half hours north of Edmonton, drives probably 28,000 kilometres a year. If someone lives in Keg River, which is about three hours south of the Northwest Territories border, they are driving 38,000 kilometres a year on average. If someone lives in Edmonton, they are driving about 14,000 kilometres a year on average. If someone lives in Vancouver, they are driving about 10,000 kilometres a year.

I say that to show that when people live outside major city centres, they are generally driving significantly more. This is why we have been proposing this type of legislation. This is something that would definitely help those folks. The savings may be modest, but they would impact those at the bottom much more. When they save $500 a year on fuel, that is 10 tanks of gas, essentially. For someone from Keg River or from Peace River, that neck of the woods, it could translate to approximately $500 a year in savings with these fuel reductions.

I argued back in April about the fact that we are coming into harvest season, and the farmers use a lot of diesel fuel when they are bringing in their crops. That is the reality. Diesel fuel makes our economy work. Diesel fuel makes it so that the farmers can take the food off the field. It makes it so they can truck it to a terminal. It makes it so they can take it from the terminal to the processing facility. If it is flour, that flour is then trucked to a bakery, which is then baked into bread. Often, that bread is then trucked to a grocery store. Every step along the way takes diesel fuel. When the diesel fuel price is reduced just marginally, it can have a big effect because of all those steps along the way, and it makes a big difference. That is one of the cases that we have been making and we will continue to make.

The other thing that we want to talk about in this session is about putting Canada first. We want to make sure that we have a government that takes care of Canadians first.

Some of the ways to do this are around changing the tax structure, and we support this particular bill. However, other things are just around ensuring that Canadian industry and business have the tools and that they have a government that is ensuring that Canadian businesses are taken care of. We have seen just recently in the United States, Donald Trump has put tariffs on our Canadian honey producers. This is a major challenge, particularly for western Canada and Alberta, as 70% to 90% of our honey, depending on the year, will cross the border and go to the United States.

What is very interesting about that is that we import more honey into Canada than we export into the United States. This tariff is just driving the cost of our honey up, as a 50% tariff as it crosses the border going into the United States makes it kind of unaffordable for Americans to buy our honey. We are bringing in honey from around the world, and we are bringing in more of that than we send to the United States. We could perhaps displace that foreign honey with our own honey, provided we were to protect the border a bit more. People would say, “We have free trade agreements and that would allow for the importation of honey from other parts of the world” and that is all true.

The challenge that the honey producers have in Canada right now is that there is stuff called adulterated honey or fake honey. It is stuff that just says “honey” on it but actually is not honey. It is made from corn syrup, rice syrup or a different sugar product and it is made to look like honey. In the past, we discovered this was happening. We would test the product that would say “honey” on the bottle and it would turn out that there was no pollen in this product. That was a pretty easy test. We could just test for the presence of pollen. If there is no pollen in honey, it obviously was not made by a bee because bees collect pollen and they tend to accidentally drop it in the honey, generally. Based on that pollen, they can actually tell where in the world that honey came from. There was this product sitting on the shelves here in Canada that said “honey” on the bottle, and there was zero pollen in it so we knew that it was not honey. Honey producers in Canada said this was a problem, so we started to test for that. Lo and behold, pretty soon, this stuff had pollen in it. It turned out that players around the world were buying pollen from Canada, dumping that pollen into the sugar water, essentially, and shipping it back, calling it honey.

I tell this entire story to say that there are mechanisms in place, things that we can do, to help our honey producers to ensure that our honey is consumed here in Canada. If we work hard on protecting our consumers from this adulterated honey, if we work to control the border around this adulterated honey, that will reduce the competition of our honey producers against stuff that is not honey. We have been calling for this for a very long time, but now it seems like there is a big opportunity to fix this problem. I am looking forward to seeing some action from the government on this topic, particularly because our honey producers are being disproportionately penalized by the 50% tariff that the United States has placed on honey. We have put a countertariff on the honey from the United States, and I anticipate that will have some effect. Instead of 80% to 90% of our product heading across the border down to the United States it will be diverted left and right across this country to other provinces. I am sure some of the honey was coming from the United States and different places.

Honeybees in Canada are extremely important. Approximately one-third of our food production relies on the bees to do their pollination, so it is incredibly important that our beekeepers remain viable in this country so that we have a stable food supply.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 10:15 p.m.

Nipissing—Timiskaming Ontario

Liberal

Pauline Rochefort LiberalParliamentary Secretary to the Secretary of State (Rural Development)

Mr. Speaker, I really enjoyed my colleague's comments related to honey. In my own family, we do, as a hobby, produce honey and maple syrup so his comments were very relevant to me. I do appreciate the need for labelling to say that things come from Canada, so well said.

Tonight we heard many comments from our colleagues across the aisle about the fact that it would be great if the relief were more permanent or if it could be extended. For me, the question is around the uncertainty. We did not know six months ago where we would be today and we do not know where we will be in six months. I would like to hear the member's comments about how we can fix things in the longer term when there is so much uncertainty.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 10:15 p.m.

Conservative

Arnold Viersen Conservative Peace River—Westlock, AB

Mr. Speaker, Stephen Harper, back in 2007, pursued an agenda of decoupling us from the United States because, he said, we were good friends with the United States at that time, but it was a great risk to Canada that 90% of our commerce went to the United States. He worked on signing 42 free trade agreements around the world. He worked very hard to diversify our markets for our energy, given that we are an energy superpower. We had 14 pipeline projects on the books. We had several LNG projects on the books. All of these things came to a grinding halt when the Liberals came to power over a decade ago.

The Prime Minister now has kind of taken up that torch, albeit in a different fashion, but when he is willing to take our good ideas and willing to follow the mantra of Stephen Harper, we will continue to support that.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 10:15 p.m.

Conservative

Shelby Kramp-Neuman Conservative Hastings—Lennox and Addington—Tyendinaga, ON

Mr. Speaker, I am hoping my colleague can acknowledge that supporting the bill before us is not giving the government a blank cheque. Could he speak to the hardships and impacts that fuel prices are having on people in his riding, be it business owners, farmers or young families?

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 10:15 p.m.

Conservative

Arnold Viersen Conservative Peace River—Westlock, AB

Mr. Speaker, Steve Van Raalte texted me just the other day. He is a heavy-duty mechanic. He is on the road often, driving from one job to the other. He was complaining to me about how the cost of fuel was really affecting his bottom line. He lives in a competitive environment and has to set his rate based on the other mechanics in the area. He lives kind of far from town and therefore is stuck paying this diesel price. He was saying that it was affecting his ability to make a living because he is on the road a lot with his mobile mechanic service.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 10:20 p.m.

Liberal

Doly Begum Liberal Scarborough Southwest, ON

Mr. Speaker, I listened intently, and I was quite intrigued by the story the member shared about the honey producer.

It is remarkable to learn about some of the things that you are interested in.

I want to ask something a little related to what you talked about but different from this specific legislation. If you were to suggest something that we could do as a Parliament, as government, to support producers like the one you referred to, the honey producers, for example, who are growing locally, what would you suggest? Sometimes we do end up with products that are not actual honey, for example, and it would be great to have some ideas on that.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 10:20 p.m.

The Assistant Deputy Speaker John Nater

I would remind the hon. member to please address her comments through the Chair.

The hon. member for Peace River—Westlock.