OTTAWA — Conservative members of Parliament are calling for a boost to Canadian diesel production to one million barrels per day as the price for the fuel continues to soar.
Fuel prices have increased globally in recent months as wars in Iran and Ukraine impact world oil supplies.
Statistics Canada reports diesel prices across the country in August were up between 60 and 90 cents on average compared with where they were a year ago.
At a news conference outside the House of Commons Tuesday morning, Conservative energy critic Carol Anstey said Canadians are paying 31 cents more per litre of diesel fuel than the global average.
“Fuel costs do not stop at the pump,” Anstey said.
“Every increase drives the cost of producing our food, transporting our goods and building homes, with every increase being felt in household budgets.”
A Conservative motion being put before the House of Commons Tuesday calls for the government to act.
The party wants an end to federal taxes on diesel fuel until Canada Day, as well as tax relief for building diesel infrastructure such as pipelines, refineries, rail and storage.
“Canada has the resources, skilled workers and expertise to build a stronger, more reliable fuel supply,” Anstey said.
“We should be putting those advantages to work to create jobs, reduce our dependence on outside suppliers and protect Canadians from supply disruptions.”
The motion says the government should set a goal of boosting Canadian diesel production to one million barrels a day.
Canada’s refineries, however, are already running at near-capacity. A report in March from the Canada Energy Regulator said crude oil refineries were using 1.6 million barrels per day, which was 90 per cent of their capacity.
“The government is in continuous contact with refiners who are maximizing their diesel production capacity to meet circumstances,” said John Fragos, the press secretary to Finance Minister Francois-Philippe Champagne.
“Canada produces approximately the exact amount of diesel we consume, which affords us domestic market security. We are currently a net exporter of diesel, meaning any additional production goes towards servicing export markets.”
This report by The Canadian Press was first published Oct. 6, 2026.
Nick Murray, The Canadian Press