Canada's national average hit 198¢/L in mid-April 2026, briefly fell to a low of 169.1¢/L on April 23 after the federal excise tax suspension took effect, spiked back to nearly 196¢/L by mid-May, and has since eased to 170.5¢/L as of August 5, 2026 (CAA). Here's the 2026 picture, what the tax holiday changed, and what every region is paying.
A major disruption to global oil supply — centred on the Strait of Hormuz, a waterway carrying roughly 20% of the world's oil — pushed crude prices sharply higher earlier in 2026, with Brent briefly trading above $120 USD/barrel. The federal fuel excise tax suspension that took effect April 20 (10¢/L off gasoline, 4¢/L off diesel, in force through September 7) briefly dropped the national average to 169.1¢/L in late April. Crude then rebounded through May before easing — the CAA national average is 170.5¢/L as of August 5, 2026, still roughly 25-30% above summer 2025 levels even with the tax holiday active (scheduled to end September 7, 2026).
Sources: CAA national average (170.5¢/L, August 5, 2026) and major-city averages as of early August 2026. Federal excise tax holiday (10¢/L gasoline, 4¢/L diesel) runs April 20 – Sept 7, 2026. For provincial detail, refresh CAA or NRCan before departure.
Canada's retail gasoline prices are linked to global benchmark crude oil prices — primarily West Texas Intermediate (WTI), which trades in USD. Even though Canada is a significant oil producer, Canadian refineries purchase crude at market rates, and those rates are set by global supply and demand.
In early 2026, a major disruption to one of the world's most critical oil shipping routes caused crude oil benchmark prices to spike significantly. The Strait of Hormuz — a narrow waterway between Oman and Iran through which an estimated 20% of globally traded oil flows — was temporarily blocked. The immediate effect on crude markets was sharp:
Crude oil prices have pulled back from their peak as shipping routes partially reopened — WTI fell nearly 12% on April 17 alone after markets responded to signals that the waterway was reopening to traffic. However, the full impact of an elevated crude price takes several weeks to fully flow through a refinery's cost structure and appear at the pump, which is why retail prices remain elevated even as crude prices ease.
Alberta's pump prices remain the lowest in Canada for structural reasons unrelated to global events: Alberta carries the lowest fuel taxes in the country (its provincial fuel tax was reinstated at 13¢/L in 2024 and remains in force, but the combined tax load is still the lightest of any province), and the province has direct pipeline access to its own oil production and refinery capacity. When global crude prices rise, Alberta consumers still feel the impact — but from a lower base, and with less layered tax.
British Columbia and Atlantic provinces carry higher fuel taxes than the Prairie provinces, and BC's geography means greater infrastructure costs for fuel distribution. These structural factors exist independently of global crude prices — when global prices spike, they add to an already-higher base.
The federal government suspended the fuel excise tax on gasoline (10¢/L) and diesel (4¢/L) starting April 20, 2026. The tax holiday is still active (scheduled to end September 7, 2026) — every Canadian saves these amounts at the pump. Even with the holiday, the national average sits at 170.5¢/L as of August 5, 2026 (CAA) — still elevated on global supply pressure.
The federal fuel excise tax is a flat per-litre tax applied at the wholesale level across Canada. Its suspension means every Canadian pays 10¢ less per litre of gasoline at the pump from April 20 through September 7, 2026. For diesel fuel, the reduction is 4¢/L.
To put this in practical terms for road trip budgets:
The suspension is explicitly framed by the government as a cost-of-living relief measure in response to elevated global energy prices. It does not affect provincial fuel taxes, carbon pricing, or other provincial fees — only the federal excise tax component.
The 10¢/L reduction is now in effect. All prices in the gas calculator and table below reflect the current post-suspension rates. Use the Northern Stay gas calculator for a personalized province-by-province fuel estimate.
Provincial regular gasoline averages as of August 5, 2026 (CAA / Natural Resources Canada). National average 170.5¢/L (CAA, August 5, 2026). Federal excise tax suspension still in effect (scheduled to end September 7, 2026).
| Province / Territory | Regular Gas ($/L) | Diesel ($/L) | vs. National Avg |
|---|---|---|---|
| Alberta Cheapest | $1.55 | $1.95 | −$0.16 |
| Ontario | $1.62 | $2.02 | −$0.09 |
| Saskatchewan | $1.65 | $2.05 | −$0.06 |
| Manitoba | $1.68 | $2.08 | −$0.03 |
| Yukon | $1.75 | $2.15 | +$0.05 |
| New Brunswick | $1.78 | $2.18 | +$0.08 |
| Québec | $1.83 | $2.23 | +$0.13 |
| Prince Edward Island | $1.85 | $2.25 | +$0.15 |
| Nova Scotia | $1.90 | $2.30 | +$0.20 |
| Northwest Territories | $1.90 | $2.30 | +$0.20 |
| Newfoundland & Labrador | $1.92 | $2.32 | +$0.22 |
| British Columbia Highest (south) | $2.05 | $2.45 | +$0.35 |
| Nunavut Remote premium | $2.50 | $2.90 | +$0.80 |
National average: $1.705/L regular gasoline and approximately $2.17/L diesel (CAA, August 5, 2026). "vs. National Avg" column is measured against the 170.5¢/L national figure. Sources: CAA and Natural Resources Canada. Prices fluctuate daily — verify at CAA or NRCan before departure.
Two factors are working in the direction of lower pump prices through summer 2026:
WTI crude fell nearly 12% on April 17, 2026, after the Strait of Hormuz was declared fully open — retreating from the spike that had briefly pushed Brent above $120 USD/barrel. If this trajectory holds, the reduction will flow through to Canadian pump prices over the following 2–4 weeks. However, oil markets remain sensitive to further developments, and any renewed supply disruption could reverse these gains quickly.
Starting April 20, all Canadians pay 10¢/L less on gasoline and 4¢/L less on diesel — a direct, immediate reduction that applies regardless of what crude oil markets do. This runs through September 7, covering the entire core summer camping and road trip season.
Taken together, the national average has settled near 170¢/L as of early August 2026 — within the 170–185¢/L range analysts projected for the summer — and Alberta is back in the 150–158¢/L range. Whether that holds through the rest of the season depends on global supply; oil markets are inherently volatile.
Budget using current prices as a conservative baseline and use the gas calculator for a province-by-province fuel estimate. If prices fall further before your trip, you'll come in under budget.
Gas is one part of your road trip budget. With a Northern Stay membership, campsite fees — the other major variable — drop to $0/night at 80+ private campgrounds across Canada.
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