Advanced Biofuels Canada comments on Prime Minister Carney’s temporary suspense of federal fuel-excise tax

Advanced Biofuels Canada commented in mid-April on Prime Minister Mark Carney’s announcement temporarily suspending the federal fuel-excise tax on gasoline, diesel and aviation fuel.

This measure, according to the association, will add to the savings Canadians already receive from the integration of clean, renewable liquid fuels into the fuel supply, which are helping to lower emissions while supporting affordability at the pump.

This comes at a pivotal time, as Canadians face growing exposure to unpredictable global energy markets beyond their control.

“Canadians should not be penalized for making cleaner, lower-carbon fuel choices,” said Fred Ghatala, the president of Advanced Biofuels Canada. “This suspension will help to ease cost pressures at the pump while maintaining progress toward a cleaner energy future.”

Biofuels are already delivering tangible cost savings to Canadians.

According to the latest “Biofuels in Canada” report, ethanol—blended into nearly all gasoline sold in Canada—was 7.4 cents per liter less expensive than gasoline in 2024, directly lowering fuel prices.

This price advantage translates into real savings: Ethanol blending reduced wholesale gasoline costs by CAD$1.7 billion (USD$1.25 billion) in 2024 alone, and by more than CAD$13.2 billion (USD$9.68 billion) cumulatively since 2010.

“These are not theoretical benefits,” Ghatala added. “Biofuels are actively reducing fuel costs for Canadians today. Policies that support their use help shield consumers from volatile global oil markets.”

Beyond affordability, biofuels play a critical role in strengthening Canada’s energy security.

By leveraging domestically produced feedstocks such as canola, corn and agricultural residues, Canada can reduce its exposure to international fossil-fuel supply disruptions and price shocks.

A diversified fuel mix, one that includes biofuels, provides greater resilience in the face of geopolitical uncertainty.

Recent global energy disruptions have demonstrated that fuel systems reliant on a single energy source are more vulnerable to sudden price spikes and supply constraints.

“Canada’s energy future must be both clean and secure,” Ghatala said. “Biofuels are a made-in-Canada solution that diversifies supply, supports rural economies and reduces emissions, all while lowering costs.”

As the government moves forward with broader affordability and energy policies, Advanced Biofuels Canada said it encourages continued progress towards increasing the use of low-carbon fuels, which deliver real economic benefits to Canadians.

“Today’s announcement is an important step,” Ghatala concluded. “Maintaining a strong, diversified fuel economy—including biofuels—will be essential to ensuring long-term affordability, energy security and economic resilience for Canada.”