Restaurants Canada says it welcomes Tuesday’s announcement by the federal government that it is extending the suspension of the federal fuel excise tax until January 31, 2027.
The extension provides some relief to Canadians and businesses facing continued cost pressures, said the national organization.
“Restaurants Canada has been advocating for an extension of the suspension as rising fuel costs add to the financial pressures facing both consumers and restaurant operators. Gas costs have risen by an average of 46% since December 2025, contributing to higher food and transportation costs and supplier fuel surcharges, reported by 86% of restaurants,” said Kelly Higginson, President and CEO, Restaurants Canada.
“For Canadians, keeping the federal fuel excise tax suspended reduces the cost of gasoline and provides some relief from a significant household expense. While the impact on individual household budgets will be modest, any measure that helps ease affordability pressures can provide Canadians with a little more room in their budgets at a time when discretionary spending remains under pressure.
“For restaurants, lower fuel costs can also help mitigate some of the cost pressures flowing through the supply chain. This is particularly important at a time when 57% of restaurants are reporting fewer customers and 54% are seeing reduced customer spending per visit as a result of fuel cost increases. With 41% of restaurants currently operating at a loss or just breaking even, operators have very limited capacity to absorb further increases in operating costs.”
Restaurants Canada said it appreciates the continued suspension of the fuel excise tax, recognizing the ongoing affordability and inflationary pressures in an uncertain economic environment.
“We will continue working with the federal government to ease cost pressures for Canadians and operators, support investment and growth, and strengthen the resilience of Canada’s restaurant sector and the jobs and economic activity it supports across the country,” added Higginson.
“As the government also navigates the current trade conflict, Restaurants Canada will continue to provide direct feedback from the foodservice industry—which represents 4% of Canada’s GDP and supports 1.2 million jobs—to help ensure tariffs and government support measures are targeted, effective and responsive to the realities facing businesses across the country.”
Restaurants Canada is a national, not-for-profit association advancing Canada’s diverse and dynamic foodservice industry. Restaurants are a $125 billion industry employing 1.2 million Canadians and the number one source of first-time jobs in Canada, said the organization.
In a social media post on X, Dan Kelly, President and CEO of the Canadian Federation of Independent Business (CFIB), said: “Glad to see the federal government extended the gas tax holiday until the new year. This was the right decision and will help small businesses and consumers avoid another cost hike at this critical time.”
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