Bill C-38

Canadian Fuel Affordability Act

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

Sponsor

François-Philippe Champagne Liberal

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

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.

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Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 11:45 p.m.

Liberal

Braeden Caley Liberal North Vancouver—Capilano, BC

Mr. Speaker, graciously, over two decades ago, the member joined a group of students visiting Parliament, which I was a part of, and spoke about why the place mattered. It is somewhat of a surprise, at this advanced hour in the House proceedings tonight, to hear a verifiable bedtime story of snakes and ladders, of partisan attacks and personal attacks taking us variously across the globe and the country. Given that we are in the midst of a trade war, we are seeing businesses and workers impacted by tariffs that are unprecedented in any of our lifetimes.

Why does the member feel that is an important use of the House's valuable time, at such an important moment for our country? Maybe she could confirm, on a measure to lower costs for Canadians, how she actually intends to vote on this bill.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 11:45 p.m.

Conservative

Cheryl Gallant Conservative Algonquin—Renfrew—Pembroke, ON

Mr. Speaker, I thank the hon. colleague for his comments, but I did not enter the chamber or the House of Commons at all in my life before I became a member of Parliament. Unfortunately, he must have me confused with someone else.

I have the right to speak on behalf of the people I represent, and they are telling me they cannot afford to live. The grocery store is almost out of bounds. It used to be a place to socialize, but now it is a place they dread. I believe that my speaking on behalf of the people who are trying to get the message that they need more affordable prices to government is duly acceptable.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 11:45 p.m.

Conservative

Jacob Mantle Conservative York—Durham, ON

Mr. Speaker, my colleague is a freedom fighter in the House, and we are proud to have her on this side.

My question is about the member's riding. She mentioned that it is expansive, and I am familiar with it. I know it is longer than most, end to end, and especially longer than many urban ridings the government members come from.

When fuel prices rise, and when government actions cause fuel prices to rise, can constituents and residents in her riding drive less? Can they drive less to work? Can they drive less to the grocery store? What happens to them when these costs rise? She has a big riding, and they have to go to far places. What do they do in that situation?

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 11:45 p.m.

Conservative

Cheryl Gallant Conservative Algonquin—Renfrew—Pembroke, ON

Mr. Speaker, the expansive size means they need to have transportation to go to work or to the grocery store. We do not even have a bus system. We have no public transportation available, save for a new start-up service in the city of Pembroke, which helps no one living outside the city area. In fact, there are people living in rural areas who cannot even afford to get a car to get a job or to keep their job. They are having to give up their jobs because they cannot afford to get there. Seniors have to be masterful at planning their week out to get groceries or to see the doctor, because every cab ride costs them a minimum of $10. When one is on a very low fixed income, that takes up the entire month.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 11:45 p.m.

Liberal

Guillaume Deschênes-Thériault Liberal Madawaska—Restigouche, NB

Mr. Speaker, my colleague is one of the most experienced members of the House in terms of years of service. In fact, she served for nearly a decade on the government side during the Harper years.

In her speech, she was quite critical of our government's economic policies, which aim to strengthen the Canadian economy and make it more resilient. Her former leader, Mr. Harper, spoke at our recent economic summit in Toronto about the value of our government's economic policies.

I would like to hear her thoughts on Mr. Harper's speech at the recent economic summit in Toronto. I would also like to know how she reconciles her speech tonight with the one Mr. Harper gave in Toronto.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 11:50 p.m.

Conservative

Cheryl Gallant Conservative Algonquin—Renfrew—Pembroke, ON

Mr. Speaker, to bring back the spirit of former prime minister Harper in the House, he used to be reviled, but now he is seen as one of the best prime ministers we ever had in Canada. Like Prime Minister Harper, who made decisions based on what was right, this party does also, and we will do our job in Parliament in looking at each proposal that is made. If, like Mr. Harper, he supports certain things and we support certain things, we will vote in favour of them.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 11:50 p.m.

The Assistant Deputy Speaker John Nater

There being no further members wishing to speak, pursuant to order made on Monday, September 21, Bill C-38, an act to amend the Excise Tax Act, extension of the federal fuel excise tax relief, is deemed read a second time on division.

Accordingly, this bill stands referred to the Standing Committee on Finance.

(Bill read the second time and referred to a committee)