Media StatementGovernment of the Northwest TerritoriesNovember 5, 2026

NWT says fuel-tax pause may offer limited relief and cost $15 million

The proposed one-year tax suspension would not lower home-heating fuel costs, which are already exempt from territorial tax.

Summary

The GNWT says a proposed suspension of territorial taxes on gasoline, diesel and certain other fuels could offer some savings, but may not provide the most effective relief for residents facing high costs.

  • What it could mean: An 80-litre gasoline fill-up in Yellowknife would cost about $8.56 less, assuming the full tax cut is passed on to customers.
  • What it would not change: Home-heating fuel is already exempt from territorial fuel tax, so the suspension would not directly lower its price.
  • Public cost: The GNWT estimates the suspension would mean about $15 million in lost revenue over one year.
  • Next steps: The government says it is developing more direct help for heating costs and working on energy-efficiency programs and longer-term energy and transportation infrastructure.

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Source: Government of the Northwest Territories

Official release