Saving You Money, Fueling Ourselves At Home

Poilievre's Emergency Fuel Relief Plan would eliminate the price premium Canadians pay and ensure all Canadians have access to Canadian-made diesel within 5 years

Ottawa, ON - Today, the Hon. Pierre Poilievre, Leader of His Majesty's Loyal Opposition and the Conservative Party of Canada, announced an Emergency Fuel Relief Plan to cut federal taxes on diesel now and build the Canadian fuel supply needed to make Canada affordable and autonomous on diesel.

"Our mission is a Canada that is affordable, safe and independent here at home. We will save you money today and fuel ourselves tomorrow," Poilievre said. "If you got it, a truck brought it. And trucks burn diesel. The current diesel price crisis will create shortages of everything and expose our overreliance on the U.S. to refine our own oil. It is unacceptable that Canadians are paying almost 32 cents a litre more for fuel than the U.S. when both are measured in Canadian dollars."

"Our plan would remove all taxes on the vital fuel and spark a massive buildup of diesel refining, storage and transportation to boost our domestic supply," Poilievre continued. "The goals are simple: eliminate the price premium Canadians pay, boost diesel production to a million barrels a day and ensure Canadians everywhere have access to Canadian-made diesel. Our plan will save you money, save your job and put Canada first."

On September 21, diesel averaged $2.74 per litre in Canada, nearly 80 per cent higher than a year earlier, 32 cents more than in the United States and 41 cents more than the world average. Grain Growers of Canada estimates that fuel for a single combine could cost $15,120 more during this year's harvest than last year. When farmers and truckers pay more for diesel, Canadians pay more for groceries.

The war in Iran has disrupted global oil supplies, and President Trump has raised the possibility of restricting U.S. diesel exports. Those restrictions could leave Canadians facing higher costs and supply disruptions.

"Global turmoil does not explain why Canadians pay more for diesel than Americans," Poilievre said. "For 11 years, Liberal policies have blocked and delayed the energy projects we need to produce more Canadian fuel and get it across our country. Canadian workers should be turning Canadian oil into Canadian fuel."

Canada already produces enough diesel to meet national demand, but transportation bottlenecks leave some regions dependent on U.S. imports. The Conservative plan would expand refining capacity, help refineries process more Canadian crude and build the transportation and storage infrastructure needed to supply every region.

The Emergency Fuel Relief Plan has two parts:

Saving You Money Today

1. Eliminating all tax on diesel sales until at least Canada Day by extending the full excise tax cut until July 1, 2027 and removing the GST from the purchase of fuel.
2. Removing all diesel production taxes by permanently scrapping the federal industrial carbon tax and the Clean Fuel Standard that adds costs to the production of diesel today and discourages new investment in refineries tomorrow.
3. Eliminate the price gap with the U.S. within 5 years by increasing production of Canadian diesel and other refined fuels to one million barrels per day, filling demand in all regions of Canada with Canadian-refined diesel, and eliminating the Canada-U.S. diesel price gap, all within 5 years.

Fueling Ourselves at Home

1. Emergency permitting for diesel refineries, storage and transportation with Shovel-Ready Zones that pre-permit areas for diesel refineries, transportation and storage so firms know that they can build without even applying, as long as they follow all safety and environmental rules.
2. 100 per cent year-one deduction for investments in diesel production and distribution with accelerated tax relief for investments that expand Canadian diesel production and move Canadian fuel to market. The government should grant a 100 per cent year-one deduction of investments in new refineries, refinery expansions, diesel and crude storage, pipelines, and other fuel transportation infrastructure and equipment needed to increase refinery throughput.
3. Strategic refined petroleum reserve by contracting Canadian refiners to supply and maintain millions of barrels of emergency gasoline and diesel for major supply disruptions. These contracts would also give refiners greater certainty to invest in production and storage.

"We will cut taxes now while we get refineries built, move Canadian fuel to Canadians and put supply aside for emergencies," Poilievre concluded. "Canadian workers turning Canadian oil into Canadian fuel. Saving you money today, fueling ourselves tomorrow."