On October 21, a coalition of national food chain groups sent a letter to Prime Minister Mark Carney lobbying for temporary diesel relief of $0.50 per litre. 

“On behalf of organizations representing Canada's farmers, ranchers, seafood harvesters and processors, fresh fruit and vegetable growers, food and consumer product manufacturers, distributors, wholesalers, retailers and independent grocers, we are writing to recommend immediate action to address the extraordinary increase in diesel fuel costs and the resulting pressure across Canada's food supply chain. Over the last 10 to 12 months, the average cost per litre for diesel in Canada has increased by almost 100 per cent to more than $2.67 per litre. Given this recent extraordinary increase, we are asking government to partially assist in mitigating further inflation to Canadian consumers.” 

The lobby group includes: The Canadian Federation of Agriculture, Canadian Federation of Independent Grocers, Canadian Produce Marketing Association, Fisheries Council of Canada, Food, Health & Consumer Products of Canada, Fruit and Vegetable Growers of Canada, Retail Council of Canada. 

These organizations represent different segments of the food system, with different business models and economic realities. Their common concern is that extraordinary fuel costs are increasing the cost of producing, processing and moving food at virtually every stage of the supply chain, at a time when Canadians remain deeply concerned about food affordability. 

The group is asking for a temporary $0.50-per-litre diesel rebate that is temporary, transparent and tied to documented diesel purchases associated with qualifying activities. It should be designed to respond to extraordinary fuel-price conditions rather than become a permanent financial support.

Canada would not be alone in responding to extraordinary energy costs with targeted relief. 

• Spain has introduced a €25-million program for primary fishery businesses affected by higher fuel costs. Eligible businesses can receive €0.20 per litre of diesel, subject to program caps. 

• France introduced emergency assistance for agricultural non-road diesel, initially covering the applicable excise duty and subsequently increasing support to €0.15 per litre through reimbursement of documented fuel purchases. 

•  Portugal has likewise adopted measures responding to exceptional energy costs, with additional support directed toward transportation, agriculture and fisheries. 

• The United States has also recently acted. On October 5, 2026, the U.S. government announced temporary measures allowing tax-free dyed diesel to be used on highways while deferring the applicable federal diesel tax through year-end. On October 9, 2026, the U.S. Treasury temporarily eased sanctions restrictions to permit the sale, delivery, offloading and importation of Russian-origin diesel, including imports into the United States, through April 7, 2027. 

Source: Canadian Produce Marketing Association October 21, 2026