Poilievre proposes diesel price relief plan: scrap taxes until Canada Day, fast-track refinery approvals

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Conservative Leader Pierre Poilievre held a news conference in Ottawa on Sept. 27 to propose a "Diesel Price Relief Action Plan," urging the Liberal government to act immediately. The plan has two pillars: first, eliminate all federal taxes on diesel — including the GST and fuel excise tax — until at least Canada Day; second, provide emergency pre-permitting and tax relief for fuel refining and transportation infrastructure.

The official party statement was issued jointly by shadow ministers Shuvaloy Majumdar (Canada-U.S. Relations), Carol Anstey (Energy and Natural Resources) and John Barlow (Agriculture and Agri-Food). It says a weak Canadian dollar makes imported diesel more expensive and a lack of refining capacity keeps prices high: "Our diesel, for our people." The statement adds that even if the U.S. president's talk of a diesel export ban amounts to nothing, Canada should strive for energy independence.

Prime Minister Mark Carney responded in Question Period on Sept. 24, saying the government has cut the fuel excise tax and is working with refiners to increase supply, while noting provinces also tax diesel. The federal government has extended its temporary fuel excise-tax relief through Jan. 31, 2027. The Conservatives say that is not enough and want all federal levies — including the Clean Fuel Standard and the industrial carbon tax — removed.

Rising diesel prices have dominated Question Period for days. With harvest season under way and freight costs elevated, fuel-tax policy is set to be one of the defining fights of this Parliament.