Mr. Speaker, I would like to begin by saying that I will be sharing my time with the member for Bourassa.
The global economy is going through a period of considerable uncertainty. New unwarranted tariffs imposed by the United States are creating uncertainty for Canadian workers, families and businesses. At the same time, ongoing conflicts in the Middle East and Europe continue to put pressure on global markets and drive up prices. Although we have no control over decisions made elsewhere in the world, we can control how we respond to them.
As Canadians continue to face economic uncertainty and a rising cost of living, affordability remains a priority for families and businesses across the country. That is why our government continues to take action. I am therefore pleased to rise today to speak to Bill C-38, the Canadian fuel affordability act, which seeks to extend federal fuel excise tax relief with respect to gasoline, diesel fuel and aviation fuel.
Earlier this year, the Government of Canada temporarily suspended this tax to help Canadians cope with the rising cost of living and fuel prices. The day the pause took effect, gas prices dropped 11¢ a litre, proving that the savings were quickly passed on to consumers. This measure actually benefits all Canadians, even those who do not drive. When global energy prices go up, the consequences go far beyond the cost of a tank of gas. Transportation costs go up, delivery costs go up, operating costs go up and, ultimately, consumers end up paying more for the goods and services they need every day.
In light of this reality, our government decided to take action. The result is savings for millions of Canadians who drive to work, drive their kids to sports or otherwise have to get around on a daily basis. Another benefit is reducing transportation and operating costs for Canadian businesses. Extending this measure in the current context is a no-brainer. That is why we believe it is important to maintain that support.
Bill C-38 therefore proposes to extend the suspension of the federal excise tax on fuel until January 31, 2027. Then, in the months of February and March, rates will be restored to only half of their usual level before a full return to the regular rate on April 1, 2027. Thanks to Bill C-38, Canadians will continue to benefit until January 31, 2027, from tax relief of up to 10¢ a litre on gas and four cents a litre on diesel. During February and March, the relief will continue at a rate of five cents a litre on gas and two cents a litre on diesel. This is a balanced, gradual and responsible approach. It provides greater predictability for families and businesses, while facilitating a gradual return to the usual rates.
This bill is about affordability. Across the country, families are trying to make every dollar count. They have to pay their mortgage or rent, buy groceries, and cover the cost of daily commuting. In many parts of Canada, a car remains a necessity. For many Canadians, especially in rural areas and even in regions surrounding major urban centres, a car is not a luxury. It is a necessity. It is an essential tool for getting to work, accessing services and participating in the economy. Bill C-38 recognizes this reality and aims to provide additional relief to households that continue to feel the effects of the rising cost of living.
However, as I explained earlier, its importance extends far beyond motorists. Think of the truck drivers who transport goods from one end of the country to the other. Think of the farmers who supply Canadians with food. Think of the entrepreneurs in the construction industry. Think of the school buses that take our children to school. When fuel costs rise, it has a ripple effect throughout the economy. It has an impact on the cost of food, building materials and consumer goods. Bill C-38 helps alleviate these pressures and supports the sectors that drive the Canadian economy.
The government estimates that this extension will deliver approximately $2.9 billion in additional tax relief to Canadians, bringing the total relief to approximately $5.3 billion in the 2026-27 fiscal year. That is a significant investment, an investment in families, workers, Canadian businesses and the resilience of our economy.
In a global climate of uncertainty, Canadians expect their government to act, they expect us to take concrete action to cut costs where it is warranted and they expect us to support the workers, families and businesses that drive our economy. That is exactly what Bill C‑38 does. It offers genuine relief for families, supports workers, supports businesses and helps make life more affordable in what remains a challenging situation.
I know that this extension will give families in Terrebonne a bit of breathing room. For all these reasons, I encourage all members of the House to support Bill C‑38 and vote in favour of it.