The Ontario government plans to extend its current gasoline and fuel tax rate cuts until the end of 2024. On Monday, Premier Doug Ford announced that his government will introduce legislation to extend cuts through its 2024 budget, which will be tabled on Tuesday.
The gas tax cut, which was scheduled to expire on June 30, went into effect in July 2022. It reduces the gasoline tax by 5.7 cents per litre and the diesel fuel tax by 5.3 cents per litre. The Ford government says, on average, the gas tax cuts saved Ontario households $320 over the two and a half years since they were first introduced.
“It's never been more important to keep costs down, especially now as people are struggling with the Bank of Canada's interest rate hikes and the rising costs of the federal government's carbon tax. We're on a relentless mission to save people money,” said Ford at a press conference in Mississauga.
Finance Minister Peter Bethlenfalvy said the provincial government acknowledges the impact of inflation and interest rates on Ontario workers. “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 announcement comes ahead of the federal government's increase in the federal carbon tax on April 1. Ford urged the federal government to scrap its planned hike.
“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 people’s pockets. That is why we are extending our gas tax cut,” he said.
The federal government defends its carbon tax, with a new analysis showing Ottawa's climate policies are effectively reducing Canada's greenhouse gas emissions and its industrial carbon pricing is the top driver of these reductions.
Ontario falls under the federal government's carbon tax because it doesn't have its own carbon pricing plan after Ford ended the province's cap-and-trade program after winning the 2018 election.
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