Ford government to extend 5.7 cent gas tax cut to June 2025

Premier Doug Ford is moving to extend a 5.7-cent cut to the provincial gas tax until next summer.

Ahead of Ontario’s fall economic statement this week, Ford – flanked by ministers Peter Bethlenfalvy and Stephen Lecce – said he would introduce legislation that would extend temporary rate cuts on gasoline and fuel taxes.

“Too many Ontario families are struggling as a result of the federal carbon tax and high interest rates, which is why we’re always working to help taxpayers keep more of their hard-earned money,” Ford told reporters.

“Our government’s gas and fuel tax cuts are just one way that we’re getting this done, in addition to scrapping the license sticker fee, banning new road tolls on provincial highways, cancelling the previous government’s cap-and-trade program and continuing to stand up for Ontario taxpayers by fighting the federal carbon tax.”

If the legislation is passed in the Conservative-majority provincial legislature, it would ensure the rates remain at 9 cents per litre through to June 30, 2025. The government estimates that the extended cuts would save Ontario households $380 on average over the three years since they were first introduced.

In July 2022, Ontario temporarily cut the gasoline tax rate by 5.7 cents per litre and the fuel (diesel) tax rate by 5.3 cents per litre.

Dan McTeague, the president of Canadians For Affordable Energy, says many are wondering why the same type of tax cut consideration isn’t given to things like propane, natural gas or hydro rates.

“With about two-thirds of us here in Ontario using natural gas or propane, one would think that that might be an interesting area for the provincial government to provide a little bit of relief given that we’re likely to see those prices much higher in colder months,” he tells CityNews.

Brian Lewis, a senior fellow at the Munk School of Global Affairs & Public Policy, questions what the Ford government’s goals are when it comes to climate change.

“How are you going to meet your climate change goals with other policy measures? What is it you’re planning to do?” asked Lewis about the government’s plan to reduce emissions. “They’ve been criticized by several people, including the province’s auditor general of not having a real plan that will get us to that emission target.”

Ford says the cuts are “especially important” as he once again called on the federal government to eliminate the federal carbon tax, which is set to increase again on April 1, 2025.

“Rising costs over the past few years have put a strain on household budgets, which is why we’ve taken action to offer relief where we can, including at the pumps,” Ontario’s Minister of Finance Peter Bethlenfalvy told reporters on Sunday.

“Our government will always look at ways to put more money back in people’s pockets,” he added.

More details are expected when the government releases its 2024 economic outlook and fiscal review on Oct. 30.