Bill C-38

Canadian Fuel Affordability Act

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

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.

Opposition Motion—Affordability Crisis

[Jaime Battiste, Liberal, Parliamentary Secretary to the Minister of Crown-Indigenous Relations]

Mr. Speaker, it is a pleasure to take part in today's debate and to discuss our government's plan to ease financial pressures on households and help Canadians build a better future for their families and our country. Our government knows that Canada is strongest when we look after one another and ensure everyone has a fair chance to succeed. That is why we are taking action to make everyday life more affordable.

In January, the government announced the new Canada groceries and essentials benefit to put more money back in Canadians' pockets. The benefit is helping more than 12 million low- and modest-income Canadians afford everyday essentials. It replaces the existing GST credit while providing more generous support. We increased it by 25% for five years, starting in July, and added a one-time payment this year. Together, these enhancements will provide substantial support to those most affected by rising food prices.

For example, a person living alone who is eligible for the GST credit could previously only receive a maximum of $543 for 2026-27. With the one-time payment and the 2026-27 benefit combined, that person will receive approximately $950 in total. For a couple with two children, total support will increase from approximately $1,086 to $1,890. These increases will make meaningful differences for households facing higher food costs. The benefit is also indexed to inflation to ensure payments rise each year with the cost of living. We are taking these steps because helping Canadians afford everyday essentials is the right thing to do.

The Canada groceries and essentials benefit is part of a broader package of measures to ease grocery cost pressures across Canada. Canada's first-ever national food security strategy will address food insecurity, support producers and strengthen supply chains to help lower prices for Canadians. The strategy is backed by more than $3 billion in investments over 10 years. It includes a $1-billion investment in food infrastructure, including food terminals, to help independent grocers buy and move completely produced products. The strategy also includes a $1-billion investment through Farm Credit Canada and a $150-million food security fund to help Canadian businesses grow, produce and process more food in Canada. A further $750 million will go to expanding year-round Canadian fruit and vegetable production. These measures will address the root causes of food insecurity by strengthening domestic food production and improving access to affordable, nutritious food.

We are not only putting more money in the pockets of those who need it the most. We are also helping Canadians keep more of what they earn through a middle-class tax cut. We have reduced the tax rate from 15% to 14%. As a result, nearly 22 million Canadians are receiving tax relief of up to $420 per person, while two-income families can save up to $840 this year. In 2026, the lower rate applies to taxable income of up to $58,523, providing meaningful relief during a period of economic uncertainty. Most of the tax relief will go to Canadians in the two lowest tax brackets, with nearly half directed to those in the first bracket. In other words, the measure is targeted to those who need support the most.

Above all, we must consider our children, and that is why we made the national school food program permanent. It will provide healthy school meals to as many as 400,000 children and save families with two children about $800 a year on groceries. Working with provinces, territories and indigenous partners, we will continue to expand the program to more schools across Canada, ensuring that hunger is never a deterrent to getting one's education.

Our government also recognizes that recent global developments have made life more difficult for Canadians. Tariffs imposed by our largest trading partner have had a significant impact on Canadian workers and businesses from coast to coast to coast. Conflict and instability in the Middle East have also driven up fuel prices worldwide. In these circumstances, Canadians need relief, and our government has delivered it. Through carefully targeted measures, we are helping Canadians meet these challenges while strengthening Canada's sovereignty and economic resilience.

For example, last spring we acted to ease the impact of high fuel costs on Canadians. In April, after disruptions to crude oil shipments through the Strait of Hormuz pushed fuel prices higher, our government temporarily suspended the federal fuel excise tax. The measure has saved Canadians and Canadian businesses up to 10¢ per litre on gasoline and unleaded aviation gasoline, up to 11¢ per litre on leaded aviation gasoline and up to four cents a litre on diesel and aviation fuel. The savings were immediate. On the first day the temporary suspensions took effect, gasoline prices fell by 11¢ per litre, providing direct relief to consumers.

Through Bill C-38, we propose to continue providing relief at the pump by extending the temporary suspension of the federal fuel excise tax through January 31, 2027, and then from February 1 to March 31, 2027, the tax would apply at 50% of its regular rate. The extension would lower everyday costs for Canadians, including truckers and businesses in the food, agriculture, housing, construction and delivery sectors. In short, it would provide timely, meaningful relief when Canadians need it the most. By easing pressure on gasoline and diesel prices at the pump, we are lowering costs for Canadians today while building a stronger, more resilient and more independent economy for the future.

To conclude, Canadians should feel the benefits of economic growth not only in the economic reports but also in their wallets and around the kitchen table. That starts with ensuring that everyone can afford to put good food on the table. We are building a stronger Canada, one where economic growth improves everyday life and gives every Canadian a fair opportunity to succeed. That is how we will build a more prosperous and inclusive future.

Business of the House

[Steven MacKinnon, Liberal, Minister of Transport and Leader of the Government in the House of Commons]

Mr. Speaker, first of all, we certainly want to acknowledge the very high ratings for this part of the week with the Thursday question.

I also want to celebrate the fact that, while every week is a good week to help Canadians with affordability, this week was a particularly good week, because the groceries and essentials benefit, which is up to $1,800 or $1,900 a year, went into the bank accounts of Canadians. The quarterly deposit was made. The Prime Minister announced today measures that will help tens of thousands of Canadians convert their homes to heat pumps, saving them money while helping with the cost of installation. The Parliamentary Budget Officer confirmed that our measures to reduce the gas tax and prolong the reduction will save the average family about $275 a year. It is a good week for affordability.

Finally, the bill that is so obviously and patently good in terms of moving Canada's strong economy forward that even Conservatives realized it was worthy of their support, Bill C-39, has now passed through second reading and is off to a special legislative committee.

It has indeed been a good week for Canadians.

Tomorrow we will proceed with second reading of Bill C-37, the first nations clean water act. When we return from constituency week, priority will be given to Bill C-40, which aims to strengthen Canada's defence sector; Bill C-38, the Canadian fuel affordability act; and Bill C-34, the safe social media act.

Note that Thursday, October 22, shall be an allotted day.

Finally, seconded by the member forRegina—Qu'Appelle, I would like to seek unanimous consent for the following motion:

That, notwithstanding any standing order or usual practice of the House, on Monday, October 19, 2026, the House shall continue to sit until midnight, provided that:

(a) at 6:30 p.m., the Speaker shall interrupt any proceedings then before the House and such proceedings shall be deemed adjourned, and the House shall proceed forthwith to the consideration of Bill C-38, An Act to amend the Excise Tax Act (extension of the federal fuel excise tax relief);

(b) after 6:30 p.m., no quorum calls, dilatory motions or requests for unanimous consent shall be received by the Chair, except for a unanimous consent motion to see the clock.

Taxation

[Daniel Gobeil, Liberal, Parliamentary Secretary to the Minister of Agriculture and Agri-Food]

Mr. Speaker, I thank my colleague for his question. Our government has always been there to protect workers, farmers and employees across all sectors of the economy.

That is precisely why we have introduced Bill C‑38, which would suspend the tax on diesel and oil. I invite our colleagues opposite to support this legislation, which represents a first step toward making life more affordable for Canadians.

[François-Philippe Champagne, Liberal, Minister of Finance and National Revenue]

Mr. Speaker, Canadians watching at home know that the Leader of the Opposition likes to talk, talk, talk, but I have an idea for him.

Today, instead of talking, he can take action. He can take action to help farmers across the country. He can take action to help families across the country. He can take action to help truckers across the country. I have a great idea for him. Today, he even has a chance to show it to Canadians by voting in favour of Bill C-38 to extend the suspension of the federal gas legislation.

Will he vote in favour of Canadians for once?

[François-Philippe Champagne, Liberal, Minister of Finance and National Revenue]

Mr. Speaker, Canadians know that the Leader of the Opposition likes to talk, but now he will have a test. Will he walk the talk? Instead of presenting a motion to oppose, I have a suggestion for him and his entire bench. Why do they not vote for farmers? Why do they not vote for truckers? Why do they not vote for families? Why do they not vote for Canada one day? They could vote for Bill C-38 and extend the suspension of the fuel tax. That is an immediate measure that would help all of Canada.

Will they vote for Canada once and for all?

[Tim Hodgson, Liberal, Minister of Energy and Natural Resources]

Mr. Speaker, I have some good news. Canadian diesel production is up 16% this year. More good news is that diesel prices have gone down three cents in the last several days. I have even more good news. If the member wants to actually help, he can vote for Bill C-38 and extend the excise tax exemption.

Opposition Motion—Diesel Prices

[Warren Steinley, Conservative, Regina—Lewvan, SK]

Madam Speaker, the Prime Minister is definitely not new, because he was the economic adviser to Justin Trudeau, who started the downfall of the economy in the first place.

For the Liberals to say that they are taking good ideas, that would be a novel idea. I would like them to steal more of our ideas. I would like the Liberal government to steal more good Conservative policies and just implement them properly. They always do half measures. The GST rebate is on new houses, but why not on all houses? On the rebate on diesel that they are talking about with Bill C-38, why not do it for longer and save people more money?

There is nothing new about the Prime Minister. He is following the terrible policies of Justin Trudeau that he helped implement, and he is making life less affordable for all Canadians each and every day.

[Juanita Nathan, Liberal, Pickering—Brooklin, ON]

Madam Speaker, it is an honour to rise and speak about this subject today, which is of crucial importance to all Canadians.

We are all aware that recent changes on the global stage have made life more unpredictable, more complex and, for too many people, more costly. Our largest trading partner has imposed tariffs on our imports, significantly impacting Canadian workers and businesses from coast to coast to coast. Conservatives may not want to call these tariffs what they are, but on this side of the House, we understand the impacts they are having on Canadian families, businesses, exports and workers.

Conflict and instability in the Middle East have led to an increase in fuel prices around the globe. Conservatives may want to blame Canada and Canadians for the challenges we face, but on this side of the House, we are positioning Canada to thrive within a rapidly changing world.

Facing these circumstances, Canadians do not need slogans, and they do not need social media influences. They need relief, and relief is what our government has delivered. Through carefully considered measures, we are strengthening our country's sovereignty and economic resilience while supporting Canadians through these challenges.

Since day one in March 2025, we have worked to save Canadians hard-earned money. On July 1 of last year, 22 million Canadians, more than half the country, had their income taxes lowered when we cut the first income tax bracket from 15% to 14%. This represents an annual tax savings of $420 for individuals or up to $840 for two-income families. To help support Canada's most vulnerable people, we introduced automatic federal benefits filings, starting with the 2026 tax year. This change will automatically give up to 5.5 million low-income Canadians the benefits they qualify for by the 2028 tax year.

We also removed the goods and services tax on new homes costing up to $1 million for first-time homebuyers, and we lowered it on new homes priced between $1 million and $1.5 million. This move gives more Canadians, especially young families, the chance to live the Canadian dream of owning a home. Speaking of young families, they know the importance of good food during school days. We made permanent the national school food program, a program derided by Conservatives as “garbage”, to provide meals for up to 400,000 children across Canada. This program saves participating families with two school-age children approximately $800 annually on groceries.

Food is essential, but it has grown more costly. To help more than 12 million Canadians manage their grocery budget, we introduced the new Canada groceries and essentials benefit, which provides a family of four with up to $1,890 this year and about $1,400 annually for the next four years. Single Canadians will have a benefit of up to $950 this year and about $700 for the next four years.

Food is fuel for learning minds and working bodies, but groceries do not make their way into stores on their own. Canada is a vast nation, and moving people and products is a necessity that requires fuel of a different kind. We know that consumers are facing higher gas and diesel prices at the pump, and businesses have their profitability impacted by the increased cost of getting goods to market. I know that in my riding of Pickering—Brooklin, this is true.

Although the factors that led to these high fuel prices are not within Canada's control, Canadians expect a strong response. We are focused on what we can control. That is why we introduced Bill C-38, the Canadian fuel affordability act, which is currently being studied. Bill C-39 is being debated in the House and will be debated later on today as well.

Bill C-38 would build on the temporary suspension of the federal fuel excise tax that we introduced earlier this year, bringing the tax on gasoline, aviation gasoline, diesel and aviation fuel to zero cents per litre. For Canadians filling up their cars, it means a tax cut of 10¢ per litre on gasoline, a savings of about five dollars on a typical 50-litre fill-up, and four cents per litre on diesel fuel. While this cut was originally set to expire last month, Bill C-38, if passed, would extend that suspension of the federal fuel excise tax until January 31, 2027, after the holiday season. Regular rates would then be reduced by 50% through March 31, 2027, inclusive.

Higher energy prices are a concern not just here at home but in every part of the planet. We are fortunate to be rich in many natural resources and to be the fourth-largest exporter of crude oil in the world. This is why the Prime Minister has said, “Canada has what the world wants.”

This summer, the executive director of the International Energy Agency said that Canada has a once-in-a-lifetime opportunity to become a global energy exporting superpower. The leaders of our G7 peer nations are asking us to step up and supply the world with the sustainable, reliable energy they need to power their economies. This is an opportunity we are leaning into and seizing with intention.

That is why we recently announced that Pacific link, an oil pipeline that will bring Albertan oil to ports in British Columbia, will be listed as a project of national interest under the Building Canada Act. Designating the Pacific link pipeline as a project of national interest means it will get built faster, reducing Canada's dependency on U.S. markets as buyers for our oil by giving us a new ability to export to Asian customers. Once completed, the Pacific link will allow us to ship an additional one million barrels of oil each day across the Pacific.

While we are prioritizing measures to help Canadians during this difficult time and working to create the right climate to grow the economy and foster investment, we have never wavered in our focus on fiscal responsibility. The International Monetary Fund forecasts that our country will be the second-fastest growing economy in the G7 groups of nations this year and in 2027. Canada's sovereign debt continues to command the highest rating, a AAA credit rating, from Fitch, from Standard & Poor's and from Moody's, the three main debt rating agencies. As we know, this exemplary credit rating allows Canada to issue debt to investors on the best possible terms.

As well, as noted in April's spring economic update, Canada is on track to reduce its deficit in 2025-26 by $11 billion more than originally forecasted in the last federal budget. This gives us an advantage when it comes to investing in the supports and services that matter to Canadians.

Canadians are strong and resourceful, and in times of adversity, they expect a strong, resourceful response from their government. The measures I have mentioned are just some of the actions we have taken to protect and promote Canadian interests while positioning the country for future growth and prosperity.

[Ryan Turnbull, Liberal, Parliamentary Secretary to the Minister of Finance and National Revenue and to the Secretary of State (Canada Revenue Agency and Financial Institutions)]

Madam Speaker, it is great to be here to participate in the debate this afternoon. I will be sharing my time with the member for Pickering—Brooklin, my wonderful colleague.

I am honoured to participate in today's debate. The world is changing rapidly. The United States is imposing new tariffs on Canada. At the same time, conflicts in Europe and the Middle East are driving up prices around the world.

Conservatives may want to blame Canada and Canadians for these global trends, as they tend to do in this House regularly, every single day. They seem to blame the government for factors out of our control or blame Canadians and try to use their hardships for political gain. However, the fact is that these higher costs are felt right here at home and all around the world, from Canadians driving to work and running errands to businesses transporting food, building materials and other essential goods across the country.

In response, our government is focused on what we can control: strengthening our economic resilience, building a stronger and more independent country and making life more affordable for Canadians. Economic uncertainty and rising costs have made affordability a top concern for families and businesses across our country. That is why one of our government's priorities is to help Canadians keep more of their hard-earned money.

As we strengthen Canada for the long term, we are also providing immediate support to help Canadians bridge the gap to a brighter future. Our government is taking action by diversifying Canada's trade relationships. We have signed over 20 new trade and security agreements in under a year. We are maintaining responsible fiscal management. We have found $60 billion in savings from government operational improvements, and we are supporting Canadians facing pressure from everyday expenses.

I want to begin by highlighting how Bill C-38, the Canadian fuel affordability act, is a key part of that effort. First, allow me to recall the support our government delivered last spring to help Canadians cope with elevated fuel costs. In the spring of this year, we introduced a temporary suspension of the federal fuel excise tax on gasoline, aviation gasoline, both leaded and unleaded, diesel fuel and aviation fuel in general. This pause reduced federal fuel excise tax rates to zero cents per litre. The measure quickly translated into lower fuel prices for Canadians, with tax savings of 10¢ per litre on gasoline and four cents per litre on diesel. The positive effects of that measure were felt immediately. The morning after the suspension took effect, gasoline prices fell by 11¢ per litre on the very first day, demonstrating that the savings were quickly passed on to consumers.

The suspension had been set to end after September 7 on Labour Day; however, this program was kept flexible by design. Like many of my colleagues, I spent the summer hearing from families and businesses in my riding of Whitby that were thankful for the relief that the spring announcement provided, but curious if it would remain in place amid stubbornly high prices. That is why, before the September 7 deadline, our government chose to announce its intention to extend the suspension of the federal fuel excise tax until January 31, 2027. That was for an additional five months, and then it would be stepped back by 50% through the next two months, to March 31, when it would go back to the full rate.

This measure has already brought down everyday costs for Canadians, including those in the trucking, food, agriculture, housing, construction and delivery sectors. The support provided to Canadians is substantial. The estimated additional fiscal impact of extending the suspension of the federal fuel excise tax is approximately $2.9 billion. As a result, Canadians are expected to receive an estimated $5.3 billion in total tax relief in 2026-27.

By extending the federal fuel excise tax suspension, Canadians will save approximately five dollars on a typical 50-litre tank fill-up at the gas pump. As members can see, this measure would make a noticeable difference for Canadians and has done so. We are grateful that we have the fiscal capacity to extend it further. By lowering costs at the pump and across Canadian supply chains, the government is actually helping Canadians keep more of their hard-earned money while protecting the economy from the pressures that mount beyond our borders. We must not listen to those who tell us that Canada is broken. The fact is that Canada's economy has remained incredibly resilient in the face of global challenges.

In fact, the International Monetary Fund projects that Canada will have the second-fastest economic growth in the G7 this year and next. This strong fiscal performance has reinforced our position. As noted earlier this year in the spring economic update, Canada's projected deficit is now more than $11 billion lower than forecasted in budget 2025, giving us greater capacity to build a stronger and fairer country for all.

Over the past year, we have used part of the increase in revenues to fund measures that make life more affordable and support Canadians. These investments are delivering meaningful results for Canadians in a time of need. At the same time, we are lowering costs today, while investing in a stronger, more resilient and more independent economy for the future. For example, we will work with provinces and territories to double Canada's electricity supply by 2050 to deliver clean, reliable and affordable energy produced at home. Over the last year, we have also signed more than 20 new trade and security deals across five continents.

Our government has already taken significant action to lower costs for Canadians. As of July 1, 2025, we cut income tax for 22 million Canadians by lowering their first personal income tax rate from 15% to 14%. This measure provides up to $420 in annual tax relief per person, or up to $840 for a dual-income family. We also eliminated the goods and services tax on new homes priced up to $1 million for first-time homebuyers, and reduced it on new homes priced between $1 million and $1.5 million.

In Ontario, our government signed an agreement to waive the full 13% GST on new home purchases under $1 million, which will save the average family $130,000 on a $1-million home in Ontario. This is really good news for Canadians who want to enter the housing market. This relief has brought home ownership within reach for more Canadians, especially young families who have struggled or been locked out of the housing market.

Effective April 1, 2025, we eliminated the federal consumer carbon price, delivering direct savings at the pump. That same day, we removed the requirement for provinces and territories to impose the consumer carbon price and delivered additional support for more than 12 million Canadians. We also launched the new Canada groceries and essentials benefit. It provides a family of four up to $1,890 this year and about $1,400 a year for the next four years, and provides a single person up to $950 this year and about $700 each year for the following four years.

Let us just remember that cheques for the third instalment of that groceries and essentials benefit went out yesterday to approximately 12 million Canadians who benefit from this measure, this enhancement to the GST rebate, which is now called the groceries and essentials benefit, with an average of $340 for a family of four. This is significant support right before Thanksgiving to make life just a little easier for families who are struggling with the elevated costs of many goods and essentials.

We also introduced automated federal benefits starting in the 2026 tax year to ensure up to 5.5 million low-income Canadians automatically receive the benefits they qualify for by the 2028 tax year. We also made the national school food program permanent. While Conservative MPs might like to call that program garbage or make absurd claims in the House regularly that there is no food in a food program, on this side of the House, we believe that 400,000 more kids getting fed at school is a good thing, and we would not deprive them and their families of the approximate $800 of savings on groceries. We feel like that is worth fighting for.

In conclusion, I could go on and on, but the fact is that Canada is well positioned to withstand the external pressures arising from an increasingly fragmented and uncertain world. We certainly cannot control global forces. The Strait of Hormuz is not within our control to reopen, but we can control how we respond here at home. This is why we are lowering costs for Canadians. We are supporting families and workers. We are strengthening Canada's economic resilience and independence. We will continue to build the strongest economy in the G7, one that creates prosperity and opportunities for future generations.

I look forward to the questions that I know are coming from the opposition members.

[Luc Berthold, Conservative, Mégantic—L’Érable—Lotbinière, QC]

Madam Speaker, I will be sharing my speaking time with the member for York—South Simcoe.

The price of diesel is still extremely high in Quebec this week. For farmers, truck drivers and all the businesses that depend on fuel to survive, this means having to pay hundreds, even thousands of dollars more every day just to be able to keep on working.

Where does every price hike at the pump end up? It ends up as part of their expenses. It ends up making transportation and production costs higher. Eventually, it ends up taking money from families' pockets. We know that diesel, which is what we are talking about today, powers the tractors used to grow our food. It powers the trucks used to transport our purchases far and wide because we do not live next door to the factories. It is also essential for manufacturing. In short, diesel is everywhere in our lives, even if we do not put a single drop into our own vehicles.

When farmers and truck drivers pay more, who ends up footing the bill? It is always Canadians. That is precisely why we, the Conservatives, decided to take action. With the motion we are moving today, we want to introduce and offer an emergency relief plan to bring prices down at the pump for Canadians and Quebeckers right now. We want to produce more fuel here in Canada. We want to better protect our country from future energy crises.

Our plan is simple and has two parts. First, we will save Canadians money by reducing the taxes that are driving up diesel costs. Second, we will increase supply at home by accelerating refining, storage and transportation, while encouraging investment in those areas.

The truth is that the current situation makes no sense. Not many people know this, but Canada has the fourth-biggest oil reserves in the world. We have the resources, we have the workers and we have the know-how.

Unfortunately, after 11 years of Liberal government, Canadians and Quebeckers continue to pay far more for their fuel than they should. A country with such abundant oil resources should be better shielded from energy shocks. We should be increasing production when markets are under pressure, refining more of our own oil, and helping to boost supply so that we can become a true energy power.

However, the opposite has been happening over the past 11 years. Liberal taxes have multiplied, Liberal delays have multiplied, and Liberal bureaucracy has multiplied. As a result, refining, storage and transportation projects still take years to obtain the necessary approvals. Neither Bill C‑5, nor Bill C‑38, nor Bill C‑39, nor any other bill the government may introduce will change the speed at which projects are actually delivered, because these are Liberal bills. Unfortunately, it is all hot air and political theatre, while nothing is really happening.

The Liberals will point to wars, geopolitical tensions and market volatility to explain increases in diesel prices, and they are not wrong. Yes, it is true that these events have an impact on prices, but there is one thing they do not explain: Why are Canadians paying more than Americans? Why are Canadians paying more than the global average price of oil? As far as I know, Americans, along with everyone else in the world, are facing the same wars and the same price volatility. That is the question we should be asking ourselves. Why do we continue to pay more here in Canada, when we have the fourth-biggest oil reserve in the world? Meanwhile, other countries are looking at us and saying that they will not invest in our country.

I agree that the Liberals cannot control what happens abroad. They are having a hard enough time controlling what is going on at home. However, there is something they can do. They can control the taxes they impose on Canadians. They can also remove the barriers, the bureaucracy and the red tape they created here. They had 11 years to strengthen our refining capacity, improve our infrastructure and make Canada less vulnerable. They did not do so.

Who pays for all those wasted years? It is Quebeckers, Canadians, families, the unemployed, people waiting in line at food banks, and young people who have lost hope of ever owning their own home because housing prices have become unaffordable. That is the reality.

Our plan aims to improve the lives of Canadians, young Canadians, and Canadian families. The first part of the plan is to help Canadians save money, as I mentioned.

We propose eliminating all taxes on diesel sales, at least until July 1, 2027. That means extending the excise tax reduction until that date and eliminating the GST on fuel purchases. When Canadians are already paying so much for gas, the government should not keep taking even more from them every time they fill up. It should leave more money in their pockets.

As we saw, it was pressure from the Conservatives that forced the Liberals to suspend the federal fuel excise tax. We asked for this many times, and the Liberals laughed at us. Suddenly, they decide to adopt a Conservative idea. There were even two motions in the House, but they voted against them. In the end, they did it anyway. Recently, they announced that they would keep this measure in place a little longer, but they also officially announced that fuel prices will go up in February and will go up even more in March.

They had already anticipated both increases, and they decided against a 10¢ hike in favour of two five-cent hikes. They figured that it would be less obvious and that Canadians would not notice. However, Canadians are not fooled, especially when they get to the grocery store checkout and see the total.

Today, we are asking the Liberals to go further. We want them to get rid of the taxes that increase the cost of producing diesel, including the industrial carbon tax and the clean fuel regulations. They say they want to make life more affordable. The Prime Minister even said that affordability in Canada is the best it has been in a decade. I have not heard that from anyone in my riding.

I asked my constituents if they felt that life was cheaper than it had been in a decade. I asked them if they felt that they had saved money across the board this year. Everyone said no and that it was the opposite.

The Prime Minister is literally out of touch. I assume he is going to tell his people not to vote in favour of our motion this week, because he does not know just how much families are struggling to make ends meet. That is the reality of an out-of-touch Prime Minister who spends more time flying around burning gas than down here seeing how every family is living and is struggling to pay their bills at the end of the month.

Canadians do not need another explanation or another theatrical announcement. They want their bills reduced, period. We want the price gap with the United States to shrink, and we want to get that done in the next five years. Canada is going to have to increase its diesel production. Its production of other refined fuels is going to have to be ramped up to about a million barrels a day. That is a lot, but we can do it. In fact, we have the capacity to do it: We have the oil, the workers and the know-how. There is no reason to put up with the United States buying our oil at a discount and then selling us diesel at a higher price.

The second part of our plan is to source more domestically. Projects take a long time, and the government slept through the past 11 years. Now it is time to get projects into production faster, cut red tape and avoid supporting bills that stand in the way of these projects.

We were presented with Bill C‑5, which was supposed to fast-track projects at a speed never seen before. However, there has been an 18-month delay, because the Liberals have had to bring in a second bill to do the same thing. They changed one word in the title, but that does not produce more results.

We want to fast-track projects and establish Canada as an energy powerhouse. We want Canadians to be able to save money and have more money in their pockets. That is why we are calling on the House to support our emergency plan to reduce prices at the pump, lower costs for Canadians and Quebeckers, accelerate investments and strengthen our energy security. It is simple: We want to save families money, develop our resources, produce more energy and better protect our country from the next crisis. That is the emergency plan, and we urge the Liberals to support it. I challenge them to do this for Canadians.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, I want to pick up on the point of short-term and long-term relief. The short-term relief is in Bill C-38, providing the tax break. In the long term, looking at the major projects and recent announcements about Pacific link and LNG phase two, we see that there are projects that can help us into the future.

I am wondering if my colleague can provide his thoughts on why it is important for us to have a balance of both short-term and long-term thinking when it comes to the issue of our natural resources.

[Abdelhaq Sari, Liberal, Bourassa, QC]

Madam Speaker, I thank my colleague for his eloquence, but I would like to stay on topic.

So as not to mislead anyone, it is very important to note that Bill C-38 does not affect Quebec's jurisdictions or its carbon market. It does not affect any portfolio. It is also important to point out that our government is not reneging on its environmental commitments; far from it.

[Abdelhaq Sari, Liberal, Bourassa, QC]

Mr. Speaker, before I begin, I would like to say that I will be sharing my time with the member for Mississauga—Lakeshore.

I am grateful for this opportunity to talk about the official opposition's motion, which addresses the reality of the cost of living. High prices are a daily reality in my riding of Bourassa and in many Montreal neighbourhoods.

In Montreal North, families are counting every dollar at the grocery store every day. Workers are wondering whether they will be able to fill up their tank before their next paycheque. Retailers are absorbing price increases they never chose. These people do not want slogans like the ones we are hearing from the opposition. They want initiatives and results.

We live in an unstable world. Wars on the other side of the world, trade tensions and weakened supply chains have impacts that trickle down to our kitchens and gas pumps. Canada did not trigger these crises, but it has a duty to respond, and our government is responding. We chose to act here and now. We chose to take action with Bill C‑38.

Bill C-38, the Canadian fuel affordability act, extends the suspension of the federal excise tax on gasoline, diesel and aviation fuel until January 31, 2027. Zero, not a penny, as we say back home in Quebec. This suspension has been in effect since April 20. Members opposite surely remember that. From day one, the price at the pump fell by an average of 11¢ a litre. In practical terms, that means savings of about $5 on a 50-litre fill-up.

We are doing this responsibly. We are doing it, of course, because we are thinking about Canadian families. The tax will be gradually reintroduced in February and March 2027 at half the regular rate: five cents per litre for gasoline and two cents for diesel. There will be no shock and no surprises.

The impact goes far beyond the family vehicle. From truck drivers and farmers to delivery companies and grocery stores, the entire supply chain that feeds the country will benefit.

Yes, diesel prices have risen around the world, but let us set the record straight and correct a few points that have been raised by the other side of the House. Diesel costs less in Canada than in most G7 countries. Since the end of February, prices have increased less here than in the United States, and the provincial diesel taxes, which range from roughly nine cents to more than 20¢ per litre, are not necessarily up to Ottawa.

Let us talk about affordability. That has to do with more than just the price per litre. The opposition wants to talk about fuel, so let us talk about it, but affordability is not just about fuel. It does not come down to just the price per litre. It is measured in a number of ways. I will quickly list them off and go through them in more detail afterward. Affordability also comes down to groceries, home ownership, pay and our children's lunch boxes. It is also measured in equity.

Let us talk about groceries. The new Canada groceries and essentials benefit provides 25% more than the old GST credit. It is tax-free, and it benefits more than 12 million low- and modest-income Canadians. A payment is coming up this week. With this summer's supplement, a family of four will receive up to $1,890 this year and about $1,400 a year for the next four years. The amount for a single person is $950 this year and about $700 for the next four years.

Affordability is measured in home ownership. For first-time homebuyers, there is no GST on homes up to $1 million, and it is reduced for homes between $1 million and $1.5 million. That means up to $50,000 in the pockets of our young dreamers who really want to make their dream of owning a home and getting on the property ladder a reality.

It is also measured in terms of pay, as I said earlier. We cut the tax rate for the first bracket of personal income from 15% to 14%. This has benefited 22 million Canadians. It puts $420 per year per person in their pockets, or $840 for a dual-income household.

It is reflected in a child's lunch box. Allow me to make a quick aside: It is a shame to hear people on the other side of the House say that this measure, which helps many young people and schoolchildren, is garbage. Canada's national school food program, which is now permanent, provides meals for approximately 400,000 children each year. It saves a family with two children nearly $800 a year on groceries.

It is also measured by our work and actions in the area of equity. Thanks to the automation of federal benefits, 5.5 million low-income Canadians will automatically receive the support to which they are entitled, such as the Canada groceries and essentials benefit and the Canada child benefit. A benefit that is not claimed because of a lack of information is, unfortunately, a benefit that is lost.

In closing, we have no control over the global forces driving up prices, but we do have control over the measures we must put in place here and now and over our government's initiatives, which must be just, fair, sincere, and, above all, responsible. This responsibility aspect is exactly I am so uncomfortable with the motion that has been introduced by the party across the way.

Our response is to take meaningful, measured action and, as I just said, to act responsibly. The opposition is proposing long-term solutions to a problem we are facing today. We are delivering results today while building a stronger economy for tomorrow. Making life affordable and strengthening our economy is not a choice between two goals. It is a single, unified commitment to families in Bourassa and across the country.

Taxation

[Tim Hodgson, Liberal, Minister of Energy and Natural Resources]

Mr. Speaker, I would invite the member opposite to join us in voting for Bill C-38 to extend the excise tax reduction.

[François-Philippe Champagne, Liberal, Minister of Finance and National Revenue]

Mr. Speaker, the Liberals will vote for action.

All we see from the opposition are motions. They have an opportunity to do something for regular folks for once. They can vote for Bill C‑38. I invite all farmers watching us today to call their Conservative MPs and ask them to vote in favour of Bill C‑38. It will provide immediate, instant relief to farmers across the country. I hope the Conservatives will do the right thing for once.