TORONTO – Fill up your gas tanks and get ready to take the long-awaited summer vacation because the Ford government is delivering their first wave of campaign promises, cutting the gas and fuel tax for Ontario drivers.
“It has never been more important to get it done and provide Ontarians with real relief,” said Premier Doug Ford. “This gas tax cut will provide more relief at the pumps for hardworking families and businesses and put more money back in their pockets, where it belongs.”
Effective July 1 until Dec. 31, the gas tax rate will be cut from 14.7 cents per litre to 9 cents per litre. The 5.7 cent cut will somewhat help resolve some of the pressures the public is feeling after paying the highest price of gas the province has ever seen.
People and businesses are feeling the pinch of high gas prices and grocery bills,” said Peter Bethlenfalvy, Minister of Finance. “Our government is cutting the gas and fuel tax rates to put money back in people’s pockets and help keep costs down.”
Cutting gas and fuel taxes is part of the government’s broader plan to provide immediate cost-of-living relief, including:
- Cutting costs for millions of Ontario vehicle owners by refunding licence plate sticker renewal fees paid since March 2020, and eliminating licence plate renewal fees and plate stickers on a go-forward basis, saving vehicle owners $120 a year in southern Ontario and $60 a year in Northern Ontario for passenger and light commercial vehicles.
- Permanently removing tolls on Highways 412 and 418.
- Providing tax relief for workers, families and seniors through the Low-Income Workers Tax Credit, the Seniors’ Home Safety Tax Credit, the Ontario Jobs Training Tax Credit and the Ontario Child Care Tax Credit.
- Implementing the new Canada‐wide Early Learning and Child Care System, which will enable Ontario to achieve an average of $10‐a‐day child care by Sept. 2025.
To further help families and businesses, the Ontario government says they are still encouraging the federal government to work with the province to reduce the cost of the carbon tax, which increased to 11.05 cents per litre on gasoline and 13.41 cents per litre on diesel back in Apr.
“As we build up Ontario’s transportation network, our government is working hard to keep costs down for drivers and families,” said Caroline Mulroney, Minister of Transportation. “At a time when the price of living has skyrocketed, our government has taken strong action by cutting the gas and fuel tax rate, eliminating licence plate stickers and renewal fees, and removing tolls on Highways 412 and 418.”
Although this is good news for the people of Ontario, one cannot help but wonder how these cuts affect critical public services like health care, child and family services, and education, which rely heavily on government taxes to fund.
