Businesses welcome federal fuel tax relief

An eastern Canadian logistics, trucking and courier company with a fleet of more than 200 vehicles says Monday’s federal tax break on fuel should provide relief to hard-hit customers. 

Karanjeet Singh, owner of Dartmouth, N.S.-based NovaExpress, says his company’s fuel bill has doubled since the war in Iran began spiking prices. 

Singh said the company previously offered some clients all-in-one rates, but uncertainty has meant he has had to add a surcharge that changes with the price at the pumps.

Set weekly by the Freight Carriers Association of Canada, the surcharge has now reached more than 90 per cent of the base shipping cost. 

On Monday the federal government plans to temporarily suspend the federal excise tax on fuel, which is expected to drop gasoline prices by 10 cents per litre and the cost of diesel by four cents per litre. 

Singh, whose company delivers from Ontario to Newfoundland and into the U.S., says that should help clients, as changes in the global oil price can take time to work through the system. 

“Everybody just cannot pass (on the price increases) easily, we get pushback,” Singh said in an interview Sunday. 

“We have a couple local small businesses … and they are shocked with this fuel surcharge now. They say it’s double now, almost. And I tell them that diesel is almost double now.” 

This report by The Canadian Press was first published April 19, 2026.

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