Mr. Speaker, I am very pleased to speak to the debate on the Canadian fuel affordability act. This measure is truly helping the people of my riding, La Prairie—Atateken, who sometimes have to travel long distances to get to work or as part of their job.
Our government is well aware of the pressures associated with the cost of living in Canada, specifically the rising cost of fuel as the world faces serious geopolitical tensions. Across the country, we have seen gas prices skyrocket. This is causing difficulties for many Canadians, so much so that filling up at the gas station has become a source of anxiety for many people.
Our government understands this situation well. That is why we have decided to extend a concrete measure that gives consumers a break. One day, all Canadians will have electric vehicles and will no longer be at the mercy of international events, such as closures of the Strait of Hormuz. However, that day has yet to arrive. That is why the Prime Minister announced in April that the government would suspend the federal excise tax on gasoline and diesel until Labour Day, September 7. Still, our approach has always been flexible. It became clear over the summer that geopolitical tensions were still elevated, which was keeping prices at the pump high. That is why the Minister of Finance announced this month that the full suspension would be extended until January 31, 2027, followed by a 50% reduction until March.
In my opinion, this decision demonstrates that our government is truly listening to Canadians, studying the facts and developing tangible measures to support Canadian families and businesses. With this announcement, we are suspending the federal excise tax of 10¢ per litre of gasoline and four cents per litre of diesel. We estimate that this suspension of the excise tax is saving Canadian consumers about $5.75 on filling a 50-litre tank using regular gasoline. This suspension comes on the heels of the cancellation of the federal consumer fuel charge that was enacted on April 1, 2025, which was already delivering direct savings to Canadians at the pump. That measure helped reduce overall inflation and lower costs for all Canadians. The suspension of the federal excise tax is a step in the same direction.
This is just one way our government is working to make life more affordable for all Canadians.
I want to mention the tax cut to lower the tax burden on Canadians, which came into effect on July 1, 2025. Canadians are paying less tax because our government lowered the first marginal personal income tax rate from 15% to 14%. Thanks to this change, 22 million Canadians now benefit from tax relief of up to $840 per year for a two-income family.
The government also cut the GST for first-time homebuyers of new homes valued up to $1 million and reduced it for new homes valued between $1 million and $1.5 million. This represents savings of up to $50,000.
Furthermore, we are helping 12 million low- and moderate-income Canadians pay for essential goods with the new Canada groceries and essentials benefit. Since the spring, we have been making regular, increased payments to the families and individuals who are eligible for this benefit. The amount has been increased by 25% for five years, starting in July 2026. These payments, made at the start of each quarter, will provide quick access to funds to help families cover their day-to-day expenses. In total, these measures mean that a family of four will receive up to $1,890 this year thanks to the new Canada groceries and essentials benefit. They will then receive $1,400 per year for the next four years. A single person, meanwhile, will receive $950 this year and $700 a year after that.
Our government also made the national school food program permanent. I am especially proud of this measure, which provides school meals to nearly 400,000 children every year, saving participating families with two children in school roughly $800 a year in grocery bills. Another equally fundamental but less publicized measure is our roll-out of automatic federal benefits. By the 2028 tax year, 5.5 million low-income Canadians will automatically get the benefits they are entitled to, including the Canada groceries and essentials benefit and the Canada child benefit. Automatic income tax filing for these Canadians ensures that they receive the benefits they are eligible for without having to apply.
Finally, I will close by also mentioning the ambitious measures we have implemented to foster competition in the telecommunications and financial services sectors in order to lower prices, allowing Canadians to change providers more easily and pay less in banking and service fees. At a time when disruptions in global supply chains and geopolitical tensions are pushing prices up, our government is taking action. Our government wants to build a stronger economy to create more job opportunities and higher wages. Simultaneously, we will lower costs to make life more affordable across the country. That's how we can ensure more certainty, security and prosperity for more Canadians, now and in the future. I hope this bill will provide Canadian consumers with some much-needed relief when it comes to gasoline and diesel.