Province Suspend Fuel Taxes as Diesel Stays Near Record Highs

With diesel prices at record levels, three provinces have now paused their fuel taxes, following the federal government’s extension of its own fuel excise tax relief to January 31, 2027.

Newfoundland and Labrador

The province will reduce its tax on gasoline and diesel to zero cents per litre from December 1, 2026 to March 31, 2027, and plans legislation that would keep the tax at zero for as long as fuel prices remain above a specified threshold.

Alberta

Alberta’s 13-cent-per-litre fuel tax is fully suspended from October 1 to December 31, 2026, after West Texas Intermediate crude averaged more than US$90 per barrel over the previous month. The province says the tax will not rise by more than 9 cents per litre in any quarter when it is reinstated.

Prince Edward Island

P.E.I. paused its provincial fuel tax—8.47 cents per litre on gasoline and 14.15 cents per litre on diesel—effective September 26, 2026 until January 31, 2027, matching the federal timeline. The tax returns at half rate on February 1 and in full on April 1, 2027.

What it means for vehicle shipping

Provincial fuel taxes are a small share of today’s diesel price, but the pauses lower operating costs for carriers delivering vehicles in those provinces. Fuel surcharges on truck and rail shipments are driven mainly by the underlying diesel price, which remains far above last year’s level.

If you have questions about an upcoming or existing shipment, please contact us directly, or check our tracking system for the latest status of a vehicle already in transit.

More information

• Newfoundland and Labrador: Provincial Government Cutting Gas Tax on Gasoline and Diesel to Zero Beginning December 1
• CP24: Alberta suspending fuel taxes amid high oil prices
• CP24: P.E.I. joins Alberta with fuel-tax break amid high gas and diesel prices