TORONTO — Rachel Doran, executive director at Clean Energy Canada, released a statement in response to the announcement of a suspension of the federal Fuel Excise Tax on gasoline, diesel, and aviation fuel:
“Prime Minister Mark Carney unveiled a temporary pause on the federal Fuel Excise Tax as the first action of his now majority government. While this may be an understandable move, it will ultimately provide only temporary and minor relief when compared to the savings of going electric. It also comes just as consumers globally are rediscovering the benefits of leaving volatile gas prices behind.
“Across the European Union and numerous countries elsewhere, observers have already seen interest in EVs multiply over the course of the last month. Searches for second-hand EVs in Germany roughly tripled in the first 18 days of March, and sales of used EVs in the U.S. have risen 20% year over year in the first quarter of 2026. Canadians are noticing too: according to online car retailer Clutch, online searches for EVs grew 94% from January to late March this year.
“As gas prices hit close to $2 per litre in many parts of Canada, Canadian households are looking for ways to make ends meet. Using 2025 gas prices, a new Clean Energy Canada study calculated that a typical Canadian driver can save $23,000 to $32,000 over 10 years of ownership, or about $250 per month, by choosing an EV over a comparable gas vehicle. At the current national average gas price of $1.76/L, EVs would save an additional $7,000 over the vehicle lifetime.
“In contrast, the removal of the Fuel Excise Tax between now and Labour Day will save the average gas car driver roughly $77, or $17 per month for less than five months (assuming about 7,700 kilometres are driven over that time with a fuel economy of 10 L/100 km and that savings from the tax’s removal are fully passed onto drivers). That’s compared to $250 per month indefinitely for EV drivers.
“Canada’s new auto strategy has already taken many important steps to help Canadians get behind the wheel of an EV, but over the next several months, it will be critical that Canada finalizes robust tailpipe emissions standards to meet Prime Minister Carney’s commitment to achieve 75% EV sales by 2035. This regulation will further drive affordability for all drivers over the long term by requiring carmakers to improve the fuel efficiency of the cars they sell. After all, what will benefit Canadians most are solutions that help them save money for good—and driving an EV is like paying about 40 cents for gas.”
