News

The Toronto Association of Business Improvement Areas (TABIA) welcomes the federal government’s announcement to temporarily suspend the Fuel Excise Tax on gasoline and diesel from April 20 to September 7, 2026.

This measure is expected to reduce fuel costs by approximately 10 cents per litre on gasoline and 4 cents per litre on diesel, providing short-term relief to Canadians and businesses in the face of rising global energy prices.

TABIA has been actively engaging with federal policymakers and senior government staff to ensure that the cost pressures facing main street businesses are well understood. In particular, TABIA has highlighted the impact of rising fuel costs on small businesses, including increased delivery expenses and fuel surcharges passed on by suppliers. These are costs that are difficult for small businesses to absorb.

For business owners, the temporary suspension of the fuel excise tax may provide several near-term benefits:

• Temper rising operating costs related to transportation, logistics, and deliveries

• Lower supplier surcharges, where fuel costs are a contributing factor

• Improved cost stability, helping businesses better manage pricing and margins

• Relief for employees, to stem the rise in commuting costs, which will support workforce retention
   
• Support for local tourism, as lower fuel costs will help encourage more visitors from across Ontario to travel to Toronto’s neighbourhoods to shop, dine, and explore local main streets, including the many festivals hosted by BIAs throughout the summer

While this is a time-limited measure, it may help ease some of the immediate pressures facing small businesses, particularly those in retail, food services, and other sectors reliant on frequent deliveries.

TABIA will continue to advocate for policies that address the underlying cost challenges facing main street businesses and ensure that the perspectives of BIAs and their members are represented in discussions with all levels of government.