Gasoline prices in Canada rose by more than 20 percent between February and March 2026. The year-over-year increase in March reached 5.9 percent, close to three times the 2 percent inflation target, largely due to the Iran conflict. However, the removal of the consumer carbon tax last year and the new temporary suspension of the federal excise tax on gasoline, which took effect April 20, combine to reduce future prices by roughly 28 cents per litre.
To learn more about how the rise in crude oil prices flows is affecting the Canadian economy, see our latest Monetary Policy Council report.
