Restaurants Canada welcomes today\u2019s announcement by the federal government that it is extending the suspension of the federal fuel excise tax until\u00a0January 31, 2027. The extension provides some relief to Canadians and businesses facing continued cost pressures.\u00a0<\/p>\n\n\n\n
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. <\/p>\n\n\n\n
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. <\/p>\n\n\n\n
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. <\/p>\n\n\n\n
Restaurants Canada appreciates the government recognizing the need to address these ongoing pressures in an uncertain economic environment. We will continue working with the federal government to reduce the cost burden on operators, improve conditions for investment and growth, and strengthen the resilience of Canada\u2019s restaurant sector so it can continue to support jobs and economic activity in communities across the country. <\/p>\n\n\n\n
As the government also navigates the current trade conflict, Restaurants Canada will continue to provide direct feedback from the foodservice industry\u2014which represents 4% of Canada\u2019s GDP and supports 1.2 million jobs\u2014to help ensure tariffs and government support measures are targeted, effective and responsive to the realities facing businesses across the country. <\/p>\n\n\n\n