Mr. Speaker, our government recognizes that Canadians are facing economic uncertainty as global instability and rising costs put pressure on household budgets. Tariffs imposed by our largest trading partner are having a significant impact on workers and businesses from coast to coast to coast. At the same time, conflict and instability in the Middle East have contributed to higher fuel prices around the world.
In the face of these pressures, Canadians need relief, and our government has delivered. Last spring, we acted to ease the impact of the high fuel costs on Canadians. In April, after disruptions to crude oil shipments passing through the Strait of Hormuz drove fuel prices even higher, our government temporarily suspended the federal fuel excise tax.
This measure 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 per litre on diesel and aviation fuel. The cost savings were immediate. When the temporary suspension of the federal fuel excise tax was first introduced, gasoline prices declined by 11% per litre on the first day of the implementation, delivering immediate results to consumers.
With Bill C-38, we are continuing to provide relief at the pump by proposing to extend the temporary suspension of the federal fuel excise tax until and including January 31, 2027, and to apply 50% of the regular excise tax rate from February 1 through March 31, 2027, inclusively. This measure would help lower everyday costs for Canadians, including truckers and businesses in the food, agriculture, housing, construction and delivery sectors. In short, it would continue providing timely and meaningful relief when Canadians need it the most.
We also recognize that groceries do not reach the store shelves on their own. In a country as vast as Canada, moving people and goods is essential and it depends heavily on diesel fuel. Higher diesel prices at the pump have also squeezed business margins by increasing the cost of bringing goods to market. The government remains in close contact with refiners as they maximize diesel production capacity to respond to current conditions.
As our government has said many times, we remain focused on what we can control, including strengthening Canada's economy, diversifying our international trade partnerships, managing public finances responsibly and supporting Canadians, who are facing rising costs on a daily basis.
Across the country, Canadians are concerned about the cost of essentials, including fuel, food, housing and other basic necessities. Our government understands these pressures and is taking concrete, responsible action to provide relief while safeguarding Canada's long-term economic stability. That action includes temporarily suspending the excise tax on gasoline and diesel.