Feds looking at how to ‘cushion the blow’ as gas prices rise amid Iran war: Carney

By Canadian Press on April 7, 2026.

OTTAWA — Prime Minister Mark Carney says the federal government is looking at how to support Canadians as oil prices rise amid the ongoing war in the Middle East.

Oil prices have surged since the U.S. and Israel attacked Iran on Feb. 28, averaging more than $1.80 per litre across Canada today, compared with about $1.32 a year ago.

Carney says his government wants to help “cushion the blow” for Canadians.

The conflict has cut off flows of crude through the critical Strait of Hormuz and shut down energy production across parts of the Middle East.

Conservatives have called on the Liberals to give Canadians some relief at the pumps by suspending federal taxes on gas and diesel for the rest of the year.

Conservative Leader Pierre Poilievre said last week lifting the fuel excise tax, clean fuel standard and GST surcharges from gas and diesel would save consumers about 25 cents a litre.

This report by The Canadian Press was first published April 7, 2026.

— With files from Sarah Ritchie and David Baxter

Catherine Morrison, The Canadian Press

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