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FederalBill C-38Second Reading

Bill C-38: Canadian Fuel Affordability Act

Introduced September 21, 2026Checked September 22, 2026
Read the official text on parl.caOfficial version — Parliament of Canada

Latest development

Passed second reading, as of .

Next: Committee review

What this bill does

This bill extends the temporary suspension of the federal fuel excise tax to January 31, 2027, then sets fuel excise tax rates at 50% of normal rates from February 1 to March 31, 2027, before the full rates presumably resume.

Plain-language summary by Legisail — not legal advice.

Business impact

Tax
Any business that purchases unleaded gasoline, diesel, or aviation fuel in Canada will see continued relief at the pump or on fuel invoices. This especially matters for truckers, couriers, farmers, construction contractors, and aviation operators who burn large volumes of fuel as a core operating cost. Businesses running fleets or heavy equipment across any province will benefit the most, as fuel is often one of their biggest day-to-day expenses. Even sole operators — like an owner-operator trucker or a small landscaping crew — will notice the difference on their fuel bills.

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Where this bill is

First ReadingSeptember 21, 2026
Second ReadingSeptember 22, 2026
Next: Committee review

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At a glance

Bill number
C-38
Current chamber
House
Jurisdiction
Federal
Session
45-1
Takes effect
In stages
Official record