MEDIA RELEASE: CCL Canada Calls for Smart Relief, Not Fossil Fuel Handouts

CCL Canada Calls for Smart Relief, Not Fossil Fuel Handouts

Citizens’ Climate Lobby Canada Calls for Targeted Relief, Not Fossil Fuel Subsidies, Amid Gasoline Tax Pause

April 15, 2026 – Citizens’ Climate Lobby Canada expresses concern over the federal government’s temporary suspension of the fuel excise tax, a fossil fuel subsidy worth $2.4 billion CAD. While Canadians need support to manage rising energy costs, blanket tax breaks disproportionately benefit wealthier households and risk increasing emissions.

“Relief should be targeted to people, not fossil fuels,” said Cathy Orlando, Director of Citizens’ Climate Lobby Canada. “Cutting fuel taxes reduces government revenue and subsidizes pollution, while high-income Canadians, who consume the most fuel, benefit the most. Those who don’t drive or fly receive little to no relief.”

According to a recent analysis by Jim Stanford, director of the Centre for Future Work, Canada already has the third-lowest gasoline taxes of 36 industrialized countries, behind only Türkiye and the United States. Notably, provincial taxes, not federal, make up the majority of gasoline taxes. The federal excise tax has not changed since 1995, and the diesel tax since 1987. Meanwhile, Canadian oil companies are reporting windfall profits estimated at $100 billion this year alone, as they charge world prices for domestically produced oil.

The climate crisis cannot be ignored, even amid geopolitical tensions. There have been mass drownings of emperor penguin chicks in the Antarctic due to low ice levels, and the shutting down of the Atlantic Meridional Overturning Circulation (AMOC) is now in the realm of possibility in this century.

Yet, the science is also clear: we still have time to act. According to the Planetary Health Check 2025 report from the Potsdam Institute for Climate Impact Research, a world-leading planetary health organization, Earth’s current health—through its remarkable biological, physical and chemical resilience—keeps the window open for returning to a safe operating space. However, this window is closing fast.

Citizens’ Climate Lobby Canada urges the government to redirect financial flows away from fossil fuels, which are responsible for over 85 per cent of global heating gases, by strengthening industrial carbon pricing, which costs as little as a Timbit per barrel of oil for oilsands producer, and creating frameworks to align the finance system with the climate emergency. This should be combined with policies to expand domestic renewable energy, invest in electrification and public transportation, and improve energy efficiency.

“Targeted support, like the Groceries and Essential Benefit, helps those who need it most without encouraging fossil fuel consumption,” Orlando added. “We must address affordability while staying committed to climate action.”

Media Contacts:
Cathy Orlando, National DirectorCitizens’ Climate Lobby Canada
cathy@citizensclimate.org | 705-929-4043