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    Gasoline Price Increase Summer 2026: Why Gas Prices Are Rising Again Despite Fuel Tax Pause

    April 15, 2026
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    Key Takeaways

    • Canadian gas prices are rising by about 10 cents per litre due to summer fuel blends, offsetting recent federal fuel tax cuts.
    • Federal and provincial EV incentives—like Ontario’s $1,000 and B.C.’s $3,000 rebates—make switching to EVs more affordable.
    • Summer fuel blends cost about 10 cents more per litre because they remove butane to reduce pollution and smog.
    • Experts predict high gas prices will remain above $1.75 per litre throughout much of the summer.
    • Electric vehicles offer long-term savings, stability, and environmental benefits as an alternative to volatile fuel prices.

    Rising Gas Prices Highlight the Benefits of Switching to Electric Vehicles in Canada

    As summer approaches, Canadians are facing a significant increase in fuel costs due to the switch to more expensive summer fuel blends at gas stations nationwide. This seasonal change typically raises the price of regular gasoline by approximately **10 cents per litre**, effectively offsetting the savings from the recently announced suspension of the federal fuel excise tax.

    Dan McTeague, president of Canadians for Affordable Energy and a former Liberal MP, warned on CTV's *Your Morning* that "**we're in for a very, very expensive summer**." McTeague, who advocates for lower energy costs, suggested that the federal government should implement additional affordability measures, such as dropping the GST on gas and diesel purchases, to provide further relief to Canadians.

    ### Federal and Provincial Incentives for EVs

    While the suspension of the federal fuel excise tax—effective from April 20 to September 7—will save Canadians **10 cents per litre on regular gas** and **four cents per litre on diesel**, the immediate price hike due to summer blends underscores the long-term financial benefits of switching to electric vehicles (EVs).

    For Canadian drivers, rising gas prices make the transition to EVs more compelling than ever. Not only can EVs help you save on fuel costs, but they also benefit from substantial federal and provincial incentives. The federal iZEV (Income Zem-Zero Emission Vehicle) program offers rebates of up to **$4,000** for new eligible EVs, with additional provincial incentives available in many regions. For example, **Ontario** offers up to **$1,000** through its EV rebates, while **British Columbia** provides up to **$3,000** for new EV purchases.

    ### Understanding Summer Fuel Blends

    Government regulations require gas stations to switch to more expensive summer fuel blends by April 15 each year. Winter blends, introduced around September 15, contain butane to help cars start in colder temperatures. While butane is cheaper than gasoline, it evaporates more quickly, contributing to pollution and smog. Removing butane for the summer season makes fuel blends more expensive by about **10 cents per litre** but ensures better fuel performance.

    McTeague noted that gas prices have already begun to rise in anticipation of this seasonal switch and are expected to increase by another **five cents per litre** by the end of this week. “**We’re still waiting for the other shoe to drop**,” he said. “Refineries know that this is a price that they have to pass on, and that’s imminent, but it won’t happen at least until Friday.”

    ### Long-Term Savings with EVs

    Even if the conflict in Iran resolves quickly, McTeague anticipates that it will take months before fuel prices stabilize. "**These are prices that will remain elevated throughout much of the summer,** until many parts of that critical region for oil and gas production get back on their feet," he explained. "It may be months, I suspect July or August, before we see prices getting back to normal. In the meantime, we're going to expect that prices across Canada remain above **$1.75 a litre**."

    For Canadians looking to reduce their dependence on volatile fuel prices and lower their annual transportation costs, electric vehicles present a compelling alternative. Beyond federal rebates, many provinces offer additional incentives, charging station subsidies, and supportive policies to accelerate EV adoption. With rising gas prices and increasing environmental awareness, making the switch to an EV could not only enhance your driving experience but also provide significant economic benefits in the long run.

    As fuel costs continue to climb, more Canadians are recognising the advantages of going electric—stable operating costs, fewer refuelling stops, and contributions to a cleaner environment. The time to consider making the switch has never been more opportune.

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