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

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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 / 11:55 a.m.

Conservative

Tamara Kronis Conservative Nanaimo—Ladysmith, BC

Madam Speaker, my colleague seems to have lost his way in the last answer, but I am grateful for the fact that he acknowledged the collaboration that has been taking place among the parties in order to provide relief to Canadians.

My colleague from Mirabel noted that the price pressures here are not short-term and yet the relief is short-term. I wonder if the member can explain why this relief is short-term and why we are not taking the longer-term actions that would bring stability to things like food costs by extending this indefinitely.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 11:55 a.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Madam Speaker, I thank the member for that question because she is quite right. There has been a great deal of collaboration with respect to this particular bill. That is one of the reasons it will ultimately pass through the House in a very timely fashion. As I indicated earlier, hopefully we will get a sense from the Senate that it will pass in an equally timely fashion because of the will of the House of Commons.

It is also important to recognize that the government, in particular with the Prime Minister's leadership, has recognized the issue of affordability and how important it is to Canadians. We will continue to follow that file very closely.

It is important to note that this legislation will extend the temporary suspension of the federal fuel excise tax until January 31, 2027, at the full 10¢ a litre and then reduce it. I am talking about the consumer gas that most of our constituents use. Then it will be extended for another couple of months at 50%, or five cents a litre.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 11:55 a.m.

Conservative

Anna Roberts Conservative King—Vaughan, ON

Madam Speaker, my colleague spoke about seniors. I have seniors in my community who disagree with the government's position. A lot of them are living below the poverty line.

When we take single seniors and look at the amount of taxes they are paying versus a couple earning the same amount of money, it is higher. If we look at a couple earning $50,000, they are paying $600 in taxes, but if we look at an individual, they are paying $5,800.

How is this going to benefit someone who cannot currently live within their current fixed income? Seventy-two per cent of seniors disagree with the government's position.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 11:55 a.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Madam Speaker, I think it is important to recognize that there is not just one area in which the government is giving support to Canadians but a multitude of different areas. For example, when we think of seniors, we can think of the benefits. I highlighted, for example, the dental program. I can highlight dialysis. Many seniors receive dialysis. We can talk about the seniors over age 75 who received a substantial increase over and above what would have been the guaranteed annual increase.

Many seniors continue to drive. A senior over the age of 90 can still be driving, and they too will get breaks. There are individuals using buses. Everyone benefits from that 10¢-a-litre drop, which has an impact on fares. Directly and indirectly, there are tangible supports for seniors in many different ways.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 11:55 a.m.

Liberal

Peter Fonseca Liberal Mississauga East—Cooksville, ON

Madam Speaker, just listening to the member, I think vividly of my riding. As people go to the gas pump, for the average resident and consumer in Mississauga East—Cooksville, that means a reduction in the price of gas they are paying. They need gas to get to work. They need it to take their kids to sports. They need it for everything they do. It is so important to have these affordability measures. The member has mentioned many other measures. He has talked about the school nutrition program, about how we are also helping with senior supports and about the dental program.

When it comes to gas, this is something that affects everybody every single day. Can the member elaborate on that?

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / noon

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I think the member has hit it right on. We are talking about a 10¢-a-litre break. That is a significant amount of money. Many of his constituents are going to have a direct benefit from it. We would, through this legislation, take that break all the way to the end of January, and then from February to the end of March, there would be a five-cent-a-litre break. I look at the legislation as a very important legislative measure on the issue of affordability, but there are many others that I talked about during my comments, some of which the member made reference to.

This is all an attempt to say that the government caucus and the Prime Minister want Canadians to know that we are very sensitive to the issue, we are proactively working on the affordability issue by taking many budgetary matters seriously, and we are acting.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / noon

Conservative

Cheryl Gallant Conservative Algonquin—Renfrew—Pembroke, ON

Mr. Speaker, the member opposite went on and on about socialized dentistry and Maoist food programs, but it used to be that Canadians could afford to pay for their own dentistry, and they could afford to buy groceries and feed their children what they wanted. The Liberals have not paid down any debt since 2015, when they were first elected, and that interest keeps on accumulating. It results in taxes, more taxes and unaffordability for Canadians.

Why does the member opposite want Canadians to be dependent upon government for everything?

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / noon

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, let me be very clear about the national food program, which the member was critical of by saying Canadians used to be able to afford to feed their children. It is a bit misleading, and let me explain why.

Back in 1988, I was first elected to the Manitoba legislature. The leader of the Liberal Party at that time was a wonderful lady by the name of Sharon Carstairs. Sharon Carstairs often talked about children who were going to school in Manitoba on empty stomachs and said that we needed to ensure they were being fed in schools.

It gives a false impression to say that this program is something that is only necessary today because of the issue of affordability. This is not necessarily true. It has been necessary for a long time. The Prime Minister has recognized that, and that is why we made the program permanent.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / noon

Conservative

Ellis Ross Conservative Skeena—Bulkley Valley, BC

Mr. Speaker, welcome to the chair.

It is an honour for me to get up to talk about affordability on behalf of the constituents of Skeena—Bulkley Valley, specifically with respect to Bill C-38, the Canadian fuel affordability act.

By the way, I am sharing my time with a member forFort McMurray—Cold Lake.

The government has framed Bill C-38 as a collaboration among the parties and members within the House, which is not entirely accurate, because long before I came here, the leader of the Conservative Party, and the Conservatives as well, were talking about affordability and the pressures Canadians were under. In fact, the leader of the Conservative Party was actually pushing for this tax break at the pumps long before I came along, specifically through the campaign.

It has just dawned on the Liberals this past year that, yes, maybe Canadians are having a tough time and that maybe they should save them some money at the gas pumps. Then they had the revelation that affordability has not gotten better in Canada but has gotten worse, and that they should extend the tax break to help Canadians. That was a Conservative idea, among many other Conservative ideas that the Liberals took.

We applauded the idea of getting rid of the carbon tax, because that was a Conservative idea. Then the Liberals said they were taking away only the consumer carbon tax and keeping the industrial carbon tax, but that we should not worry as it is not going to affect affordability. Anybody will tell us that any kind of business that gets additional expenses, including taxes, will not absorb it. They eventually pass it on to the consumer.

I agree there are a lot of different components that add to inflation and the cost of living. This is just one small component. Therefore, if anything, while I do applaud this measure because it is a Conservative measure, I will be asking the government to take more of our Conservative ideas to save Canadians money, not just at the pump but also to deliver the promise of actually making groceries affordable so we have something, as the Prime Minister requested, to judge him on: the prices at the grocery store. Overall, this one measure is not going to fix affordability, but it would help. It is assistance for families and especially for our young people when fuelling up at the gas pumps.

I also agree with the members of the Liberal government who said that feeding children in schools is not a new initiative. My own band, for instance, started doing that not only for children in schools but also for seniors, because we had own-source revenue by engaging the economy. It is not new, but having to feed children in schools is at record levels in Canada, a first world country.

Record levels of people are visiting food banks in Canada in a single month, over two million, of which approximately 30% are children. Given where I come from, I can understand that. I understand the hardship and heartbreak of a middle-class family. One in five of the people who are visiting a food bank has a job. This is what I noticed as an MLA in Victoria, when I used to walk to work. I walked past the food bank. Once a week it would have a food distribution. Slowly I started seeing minivans parking outside and people eating the food they had taken from the food bank. It was hard to ignore.

This affordability issue is not what it was 20 years ago. The middle class is now affected. They are now struggling to the point where even our young, educated professionals are looking to leave Canada because of the cost of living.

There is a lack of opportunity. There are no projects getting approved. Nothing is moving in Canada. In terms of our young people and our future, I do not know about the rest of the people here, but where I come from, we always looked to see what the future of our country is going to be, what our province is going to be, what our region is going to be and what our community is going to be, for the benefit of ourselves and, more importantly, for the benefit of our kids and our grandkids, especially in a place like Canada.

What was the Liberal proposal at a convention? It was for those young people to try to find a better life elsewhere, abroad, maybe in the United States. The proposal was to think about a $500,000 exit tax. If they cannot afford life as it is in Canada, how are they going to afford $500,000 to leave Canada? That is cruel. It is not investing in the future. How can we invest in the future when we are not looking at how Canadians are struggling?

The Liberals are praising their dental plan and are asking how come the Conservatives keep criticizing it. When I go back to my riding, seniors approach me and tell me how they do not qualify. They make too much money under their pension. I actually stopped a senior citizen in Kitimat, who was shopping. She had one item in her cart. It was bread at 50% off because it was old bread. She did not even go to the store for bread. She goes there regularly for the opportunity to find something on sale. She had one item.

There are a lot more measures the Conservatives have proposed that the Liberal government should entertain and that should pass. The four or five proposals that the Liberals borrowed from the Conservatives and implemented in the last campaign were a good sign that the Liberals are finally waking up to how Canadians are struggling. The suspension of the fuel tax is one small measure that can help, but it is not going to be enough.

We agree that there are global situations that are making this situation worse, things that we cannot control, but there are things in Canada that we can control, including what we are talking about here today: extending the fuel tax break. The government could stop the inflationary borrowing and budgets that are being proposed. It could stop some of the projects that will increase inflation, such as the $90-billion Alto high-speed rail project. That is $90 billion that we do not have.

This is a great announcement, but it is certainly not enough. Will it affect affordability, especially for people who do not even have cars? This just keeps piling up. As we go through the debate, and I am sure a lot of members can see this, costs are continuing to go up, based on the Liberal government's own debates and based on global pressures. Can the government focus on affordability for Canadians? Within our own circle of what is Canada, can we focus on things we can do here now to help, such as what the Conservatives have been talking about since long before I got here?

We will continue to fight for affordability for Canadians, fight for young people and fight for a better Canada, but the Liberal government has to take more of the direction that is coming from this side, not just the four or five ideas it has taken from the Conservatives over the last year.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 12:10 p.m.

Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Mr. Speaker, first of all, as I expressed at the beginning of the discussions and debates, there are a number of ideas out there. We are very happy and grateful that the Conservatives are supporting Bill C-38. It will make a difference for Canadians. However, to address the member's comments, I will say that this is only one initiative that the government has brought in to support Canadians on the issue of affordability.

I want to follow up with a very specific question. The member made reference to a senior who did not qualify for the dental program, and that was part of the problem. Does the member support universal free access to dental care? Is that what he is advocating, because that is not—

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 12:10 p.m.

The Deputy Speaker Tom Kmiec

I have to give a chance to the member for Skeena—Bulkley Valley to respond.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 12:10 p.m.

Conservative

Ellis Ross Conservative Skeena—Bulkley Valley, BC

Mr. Speaker, I would love to ask that senior why they do not qualify and why the government keeps getting up and trumpeting, as if this program were the best thing in the world, when a lot of the seniors, especially in my riding, do not even qualify in the first place. Why are there two signals, two messages? When we are really talking affordability, why is the senior so confused that they cannot get the dental plan that the Liberals are championing as the best thing in the world since sliced bread? Just be honest with Canadians.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 12:10 p.m.

Conservative

Kevin Waugh Conservative Saskatoon South, SK

Mr. Speaker, the hon. member from Skeena—Bulkley Valley made a number of great points this morning. I was talking with a staffer. They had a five-year mortgage term ending at 1.92%, but unfortunately, five years later, now it is over 4%, so we are talking affordability. The Liberals continue to borrow at record rates. There has been a doubling of the interest rate, and a staffer was discussing, in her conversation, the affordability issue.

The legislation would help. There is no question that Bill C-38 would help with the affordability of gas. I hear it in my province, because farmers are dealing with diesel and its record prices.

However, I just want to talk about the hon. member's experience with young people and the affordability issue.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 12:15 p.m.

Conservative

Ellis Ross Conservative Skeena—Bulkley Valley, BC

Mr. Speaker, it is as if every young person across Canada does not see a future here, not only in terms of the affordability of a house and the cost of living but also where their future is in a profession. We are talking around the issue of Canada's becoming an energy superpower, but there is no action. We have so many different issues with Canada, but the economy and affordability are probably number one in terms of how we move forward as a strong, independent country, because the last 10 years have actually put us in a situation where Canadians are struggling, and we are trying to figure out how we move into the new global geopolitical world we are moving into when we really do not have the strength to do it.

Canadian Fuel Affordability ActGovernment Orders

September 22nd, 2026 / 12:15 p.m.

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, I find when I talk to constituents, and I do hold a lot of community meetings, that, yes, there is a huge amount of concern with affordability. As the hon. member will know, I will vote for the bill as well. However, I also hear a lot of concern from my constituents in British Columbia about how this summer we had a province-wide state of emergency over wildfires. I know that certainly there is deep concern within Skeena—Bulkley Valley about the changes in the lower water levels and impacts on salmon. I wonder if he has any comments on this other aspect of a crisis we are seeing. We cannot really deal with one at a time. We have to deal, with urgency, with both.