Federal Fuel Tax Relief Extended Into 2027, Offering Continued Savings for New Brunswick Drivers

Drivers across New Brunswick are set to receive several more months of relief at the gas pumps after the federal government announced an extension of its temporary suspension of the federal fuel excise tax.

The announcement, made in Miramichi on September 8, means the federal excise tax will remain suspended through January 31, 2027.

The current suspension represents savings of approximately 10 cents per litre on gasoline and 4 cents per litre on diesel.

For New Brunswick residents who rely heavily on vehicles for work, school, medical appointments and everyday travel, the extension could provide some continued relief as households deal with elevated costs for groceries, housing and other necessities.

Tax Will Return Gradually

The federal government is not planning to restore the full tax immediately after January.

From February 1 through March 31, 2027, half of the regular excise tax is expected to return. That would amount to approximately:

5 cents per litre on gasoline 2 cents per litre on diesel

Unless the government announces another change, the full federal excise tax rates are expected to return on April 1, 2027.

For someone purchasing 50 litres of gasoline, the current 10-cent-per-litre suspension represents about $5 in federal excise-tax savings per fill-up, before considering other taxes or changes in the underlying price of fuel.

Impact on New Brunswick

The announcement is particularly relevant in New Brunswick, where many communities are spread over large geographic areas and residents may have limited public-transit options outside major centres such as Moncton, Fredericton and Saint John.

Businesses that depend on transportation, including contractors, delivery operators and other industries using gasoline or diesel, may also benefit from the temporary tax relief.

However, the suspension does not guarantee that pump prices will remain low. Retail fuel prices are influenced by several other factors, including crude-oil prices, refining costs, wholesale markets, provincial regulations and other taxes.

The extension nevertheless means one federal tax component that would otherwise be added to the price of gasoline and diesel will remain temporarily removed.

What Happens Next?

New Brunswick motorists can expect the full federal excise-tax suspension to continue until the end of January, followed by the reduced rate during February and March.

For consumers, the bigger question will be what happens when the full tax is scheduled to return in April 2027 — particularly if fuel and other household costs remain high.

CanJam News will continue following developments affecting fuel prices and affordability across New Brunswick.