CTOA News & Updates

CTOA Calls for Advance Certainty and a Responsible Transition on Federal Diesel-Tax Relief

National trucking association asks Ottawa to provide advance certainty before the September 7 expiry and consider a temporary extension or phased return of the federal diesel excise tax.

OTTAWA, ON / August 17, 2026: The Canada Truck Operators Association (CTOA) is calling on the federal government to provide trucking businesses with advance certainty about the future of the temporary federal fuel excise tax relief on diesel before the measure expires on September 7.

The temporary suspension currently reduces the federal excise tax on diesel by four cents per litre. Without a further decision, the full tax is scheduled to return on September 8.

CTOA says small and mid-sized carriers and owner-operators need enough notice to plan fuel budgets, freight pricing, customer contracts and fuel-surcharge arrangements. Sudden cost changes are particularly difficult for smaller businesses operating on narrow margins and with limited ability to immediately pass higher fuel costs through to customers.

CTOA Requests

  1. Provide an advance decision on the future of the diesel-tax relief rather than waiting until the September 7 expiry.
  2. Consider a temporary extension if diesel prices and trucking operating costs remain elevated.
  3. Consider a phased return rather than restoring the full four-cent-per-litre tax at once. One possible approach would be to restore one cent per litre at a time over four months.
  4. Use current evidence on diesel prices, freight-market conditions and carrier operating costs when determining the transition.
  5. Assess the impact on small carriers and owner-operators, who generally have less ability than larger fleets to absorb abrupt cost increases.

CTOA supports predictable, evidence-based policy that allows trucking businesses to plan responsibly while recognizing the government’s broader fiscal considerations. The association is not calling for permanent relief regardless of market conditions; it is asking for certainty and a responsible transition that reflects conditions facing the transportation sector.

Canada’s trucking industry remains essential to domestic trade and the movement of food, manufacturing inputs, construction materials, retail goods and other necessities. Fuel-cost changes can therefore affect not only carriers but businesses and consumers throughout the supply chain.

CTOA will continue monitoring diesel prices and operating conditions and engaging governments on practical measures that support a competitive and resilient trucking sector.

About CTOA

The Canada Truck Operators Association is a national transportation industry association representing drivers, owner-operators, small and mid-sized carriers, fleet owners and transportation stakeholders. CTOA advocates for road safety, fair rules, practical compliance, supply-chain resilience and policies that reflect the realities of Canada’s trucking industry.

Media Contact

Canada Truck Operators Association
info@thectoa.ca
www.thectoa.ca