Conservatives Call for Emergency Plan to Lower Diesel Prices

Conservative Leader Pierre Poilievre is calling on the federal government to pass emergency measures to reduce the price of diesel, citing what he described as a “full-scale diesel price crisis.”

“First, we want all diesel taxes cut until July 1, 2027. Next, we want decreased taxes to increase investment in refining and transportation of diesel,” Poilievre said during question period in the House of Commons on Sept. 24.

Poilievre’s proposal comes as diesel prices have surged in Canada. The average retail diesel price in Canada reached about $2.66 per litre on Sept. 22, according to fuel-price tracking platform GasBuddy, up nearly 15 cents from a week earlier.

The proposal also comes in the wake of U.S. President Donald Trump’s Sept. 22 statement backing the idea of temporarily banning U.S. diesel exports. U.S. Treasury Secretary Scott Bessent has said the administration was examining whether a full or partial ban would be feasible.

Poilievre said in his remarks that even if the proposal does not come to fruition, Canada “should not have to rely on the Americans to give us diesel that comes out of our own ground.”

Carney Responds

Responding to Poilievre, Prime Minister Mark Carney argued that higher diesel prices are being driven by global instability and supply disruptions, including conflicts in the Middle East and Ukraine. He added that Ottawa will be extending its reduction of the fuel excise tax and working to boost diesel supply.

“The government is acting, including by extending the reduction in the fuel excise tax on diesel and on regular gasoline. As well, we are working with refiners … to maximize the availability of diesel in Canada, Carney said.

The prime minister added that provinces impose their own taxes on diesel and gasoline and said those governments are responsible for decisions regarding those taxes.

Poilievre charged that the federal government was still adding to fuel costs through the GST and Clean Fuel Regulations while failing to expand Canada’s refining capacity. He accused Carney of ducking responsibility, stating that he “blames provinces for inflation under his leadership.”

Poilievre did not introduce a motion during question period but pressed Carney to adopt his party’s plan. Carney responded that passing Bill C-38 “will lower the tax on diesel.”

The government suspended the federal fuel excise tax on diesel and gasoline from April 20 through Sept. 7, reducing the federal excise tax by 4 cents per litre on diesel and 10 cents per litre on gasoline. The government has since introduced Bill C-38, the Canadian Fuel Affordability Act, to extend the zero federal excise-tax rate through Jan. 31, 2027. The legislation would then apply half the regular excise-tax rates from Feb. 1 through March 31, 2027.

Carney also argued that his government’s Build Canada Strong legislation, tabled Sept. 21 and currently at second reading in the House of Commons, will help accelerate major projects and build refining capacity.

MPs Cite Impact on Farmers

Speaking Sept. 24 in the House of Commons, Conservative MP John Barlow, who serves as his party’s and agriculture critic, recounted the situation of an Alberta farmer he spoke with whose harvesting costs had risen from a budget of “about $50,000” to $130,000 for last year’s harvest and are expected to increase further this year.

“This year, he’s telling me it’s going to be devastating as diesel prices have doubled yet again to more than $2 a litre,” Barlow said.

Conservative MP Lianne Rood, who represents the Ontario riding of Middlesex-London, also raised concerns about the impact of fuel costs, saying combines can require hundreds of litres of diesel per day and higher trucking costs contribute to higher grocery prices.

“Farmers say the year looks bleak. One in three households in Middlesex, London, is food insecure. Grocery prices keep climbing because fuel, fertilizer, and trucking costs get passed down the line,” she said.

Agriculture and Agri-Food Minister Heath MacDonald echoed Carney’s reference to global factors driving prices beyond Canada’s control.

“What’s causing diesel prices to rise [are] the geopolitical situations that we find ourselves in, and it is hard,” MacDonald said. “But farmers are resilient.”

A previous Conservative motion on May 27 called on the government to end all federal taxes on gas and diesel, including the GST, for the remainder of 2026 and permanently scrap the Clean Fuel Standard. The motion was defeated 138–195.