|TORONTO — As part of its plan to keep costs down for Ontario families and businesses, the Ontario government is providing more relief at the pumps by cutting the gas tax by 5.7 cents per litre and the fuel tax by 5.3 cents per litre for six months, beginning July 1.|
“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 December 31, 2022, the gas tax rate will be cut from 14.7 cents per litre to 9 cents per litre, representing a cut of 5.7 cents per litre. The fuel tax rate, which applies to diesel, will be reduced from 14.3 cents per litre to 9 cents per litre, representing a cut of 5.3 cents per litre.
When combined with the 4.3 cents per litre savings from the elimination of the previous government’s cap and trade carbon tax, the reduction in provincial taxes and charges on gas totals 10 cents per litre.Vehicle owners in Ontario will see significant direct savings from the gas tax cut and the elimination and refunding of licence plate renewal fees, with households benefiting from an average combined savings of about $465 in 2022.
“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.”
“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.”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 September 2025.To further help families and businesses, the Ontario government continues to encourage the federal government to work with the province by reducing the cost of the carbon tax, which increased to 11.05 cents per litre on gasoline and 13.41 cents per litre on diesel on April 1, 2022.
In April 2022, Ontario’s legislation to cut gas and fuel taxes received Royal Assent.Vehicle owners in Ontario will see a significant direct savings from this gas tax cut and the elimination and refunding of licence plate renewal fees.
For example, a family in Southern Ontario who owns two cars and drives regularly would save about $815 in 2022. Households that do not own vehicles are expected to benefit from the impact of the gas tax cut in the price of purchases such as taxis, food delivery and consumer products.
The price paid at the pump is made up of the cost of crude oil, wholesale margins, retail margins, federal excise tax, the federal carbon tax, Ontario gasoline/fuel tax and HST.Ontario’s Gas Tax program supports public transit in municipalities across Ontario by providing two cents per litre of provincial gas tax to improve and expand transit.
The government will ensure that municipalities that receive funding through the program are not impacted by the gas and fuel tax rate cut.
Premier Ford will be meeting with his Premier colleagues for the Council of the Federation meeting July 11-12 and will be discussing affordability issues.