Ahead of Ontario’s fall economic statement this week, Premier Doug Ford is looking to introduce legislation that would extend temporary rate cuts on gasoline and fuel taxes.
Ford shared the news at a press conference in Etobicoke on Sunday, where he was flanked by ministers Peter Bethlenfalvy and Stephen Lecce.
“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. The Ford government says the cuts are “especially important” as the federal carbon pricing scheme 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.