Prime Minister Mark Carney said the move is intended to offer relief to Canadians by lowering the cost of gas by $0.10 per litre and diesel by $0.04 per litre, as supply chain disruptions caused by conflict in the Middle East drive up global fuel prices. It will also apply to aviation fuel. (The Logic)

Talking point: The International Monetary Fund said in its economic outlook released Tuesday that short-term tax cuts like this one should be avoided, since they’re often regressive, costly, and politically difficult to roll back. The temporary relief is expected to cost the government $2.4 billion. In Canada’s case, Carney said high fuel prices are expected to help lift the economy thanks to the oil and gas sector, and Carney said the government is “recycling” the extra money it expects to receive from that boost to help pay for the tax cut. Conservative Leader Pierre Poilievre made a similar pitch earlier this month, but also called for Ottawa to cut the GST on fuel until the end of the year and permanently axe the clean fuel standard tax.