Newly empowered government moves quickly to ease pressure on households.
Canadian Prime Minister Mark Carney has suspended the country’s federal fuel tax in his first major policy move after securing a parliamentary majority, citing rising global oil prices linked to the Iran conflict.
Carney announced that the federal fuel excise tax will be paused from next Monday until September 7, describing the decision as a “responsible, temporary measure.”
The move is aimed at reducing costs for consumers, truckers, and businesses facing higher fuel expenses.
The policy comes as global energy markets react to geopolitical tensions in the Middle East, which have driven up oil prices. By suspending the tax, the government hopes to provide immediate financial relief while maintaining economic stability.
Carney’s Liberal Party now holds a majority in parliament, allowing it to pass legislation without opposition support. This marks a historic shift, as it is the first time a Canadian government has moved from a minority to a majority between elections.
The prime minister has signaled that his administration will prioritize affordability, housing, and major economic projects in the coming months. He has also emphasized reducing Canada’s reliance on external pressures, particularly from global powers.
Carney’s rise to power has been shaped by both domestic concerns and international developments, including shifting alliances and economic uncertainty.
The fuel tax suspension underscores his government’s focus on immediate economic relief while navigating a volatile global landscape.