Carney Suspends Gas Tax as Iran War Drives Up Energy Costs.

The article focuses on Canadian Prime Minister Mark Carney’s decision to suspend the federal fuel excise tax until Labor Day weekend in response to a 45% increase in gas prices in 2026, largely attributed to the Iran war. This temporary measure, starting April 20, will reduce gasoline prices by 10 Canadian cents per liter and diesel by 4 cents, costing the federal treasury about C$2.4 billion, and also applies to aircraft fuel. Carney emphasized balancing fiscal responsibility with relief efforts, rejecting calls to eliminate all federal gas taxes, while his government, now holding a parliamentary majority, plans to prioritize affordability, housing, and infrastructure. The suspension follows earlier tax credit increases aimed at easing consumer costs and aligns with public preference for fuel tax cuts amid rising prices. [Extracted from the article]