Conservative MP Sandra Cobena (Newmarket—Aurora) has characterized the new food supplier fuel surcharges as “no surprise,” using the development to criticize the Liberal government’s current fiscal policies.
In recent comments, Cobena argued that these surcharges effectively cancel out the benefits of recent government tax relief measures. Her response centers on several key points:
Key Arguments from MP Sandra Cobena
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Ineffectiveness of Current Relief: Cobena stated that the surcharges “ultimately erase any savings” provided by the Prime Minister’s recent suspension of the federal excise tax.
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Call for Total Tax Removal: She is advocating for a more aggressive Conservative proposal: the removal of all federal taxes on fuel for the remainder of the year. She contends that only this level of intervention will provide meaningful relief to Canadians struggling with grocery costs.
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Predictability of the Crisis: By stating it “doesn’t take a genius” to see this coming, she framed the surcharges as a predictable consequence of high energy costs and global instability that the government failed to adequately prepare for.
Context of the Surcharges
The surcharges Cobena is referencing come from major Canadian food suppliers—including Maple Leaf Foods, Tree of Life, Sunrise Farms, and CTS Foods. These companies have introduced “temporary” fees (ranging from $10 per shipment to $0.11 per kilogram) to offset soaring diesel and gasoline prices.
Why Prices are Spiking
The surge in fuel costs is largely attributed to:
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Geopolitical Tensions: Specifically, the 2026 blockade of the Strait of Hormuz, which has severely disrupted global oil supplies.
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Increased Logistics Costs: Suppliers claim they can no longer absorb the 40–50% increase in trucking expenses without passing them on to retailers, who in turn may pass them to consumers.
While major grocers like Loblaw and Sobeys have stated they are pushing back against these surcharges, independent grocers with thinner margins (often around 2%) have warned they have little choice but to raise shelf prices.
⛽ Gas Price Relief
The most immediate relief is coming via a temporary suspension of federal fuel taxes to combat price spikes driven by global oil market disruptions.
- Federal Fuel Excise Tax Suspension: From April 20, 2026, until September 7, 2026, the federal government is suspending the excise tax on gasoline and diesel.
- Savings: This will reduce the price at the pump by 10 cents per litre for gasoline and 4 cents per litre for diesel.
- Savings: This will reduce the price at the pump by 10 cents per litre for gasoline and 4 cents per litre for diesel.
- Carbon Tax Update: As of April 2025, the federal consumer carbon tax was cancelled. Depending on your province, this has already contributed to a reduction in gas prices of approximately 18 cents per litre compared to 2024 levels.
- Provincial Action: Various provinces are facing pressure to match the federal suspension. For example, in British Columbia, matching the relief could save drivers between 14.5 and 27 cents per litre depending on the city.
🛒 Grocery Price Relief
The government has replaced the old “Grocery Rebate” with a more robust, long-term system called the Canada Groceries and Essentials Benefit (CGEB).
1. The Canada Groceries and Essentials Benefit (CGEB)
Starting in July 2026, this benefit officially replaces the GST/HST credit. It includes a permanent 25% increase in payment amounts for the next five years.
|
Recipient Type |
Estimated Annual Total (2026-27) |
Permanent Increase (Starting July) |
|
Single Individual |
Up to $950 |
~ $700/year (25% higher than old GST credit) |
|
Family of Four |
Up to $1,890 |
~ $1,400/year (25% higher than old GST credit) |
2. One-Time “Top-Up” Payment
To bridge the gap before the new system starts in July, a one-time lump-sum payment is being issued.
- Timing: To be paid out by June 2026.
- Amount: Equivalent to a 50% increase of the 2025-26 GST credit value.
- Eligibility: If you were eligible for the GST/HST credit in January 2026, you will receive this automatically.
3. Structural Changes
- Grocery Code of Conduct: Now fully operational as of January 2026, this code aims to increase transparency between retailers and suppliers to stabilize shelf prices and curb “shrinkflation.”
- National School Food Program: Now a permanent fixture, providing meals for up to 400,000 children, which is estimated to save participating families roughly $800 per year on their grocery bills.
How to get your payments:
For both the gas tax relief and the grocery benefits, you generally do not need to apply.
- Gas: Savings are applied automatically at the pump.
- Groceries: The CRA determines eligibility based on your tax returns. Ensure your 2024 and 2025 tax returns are filed to avoid any delays in receiving the June top-up or the July CGEB payments.
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