Continued gas tax cuts would save households $320 on average since 2022
TORONTO — To continue keeping costs down for families and businesses, the Ontario government is introducing proposed legislation through its spring 2024 Budget that would, if passed, extend the existing gasoline and fuel tax rate cuts until December 31, 2024.
“With the federal government about to increase its costly carbon tax, it’s never been more important to provide relief at the pumps and put hundreds of dollars back into peoples’ pockets. That is why we are extending our gas tax cut,” said Premier Doug Ford. “I urge the federal government to join us by scrapping its planned 23 per cent carbon tax hike on April 1, which will only make life more expensive for hardworking Ontario families.”
The Ontario government temporarily cut the gasoline tax by 5.7 cents per litre, and the fuel (diesel) tax by 5.3 cents per litre, from July 1, 2022 to June 30, 2024. Today’s announcement would ensure the rates remain at 9 cents per litre until December 31, 2024, saving Ontario households $320 on average over the two and a half years since the tax rate cuts were first introduced.
“Our government understands that high inflation and interest rates are hurting Ontario workers and their hard-earned paycheques,” said Peter Bethlenfalvy, Minister of Finance. “That’s why we acted early to keep costs down and will continue to support Ontario families at the pump with our latest gas tax cuts.”
The proposed extension to the gasoline and fuel tax rate cuts builds on the government’s additional measures to help put more money back into people’s pockets, including:
- Eliminating the licence plate renewal fee in March 2022, saving the average household $600 to date.
- Banning new road tolls on 400-series highways in Ontario and permanently freezing driver’s licence and photo card fees, saving drivers an estimated $66 million over the next five years.
- Launching One Fare, which will save daily riders on participating systems an average of $1,600 each year
- Introducing legislation that, if passed, would give Ontario voters a veto over a new provincial carbon tax, cap-and-trade system or other carbon pricing program.
- Ending the Drive Clean Program, saving taxpayers over $40 million every year.