TORONTO — To help Ontario families and businesses keep costs down, the Ontario government will be proposing legislation through its upcoming 2023 Fall Economic Statement that would, if passed, extend the gasoline and fuel tax rate cuts to June 30, 2024, saving households $260 on average since the tax cuts were first introduced.
“We know that every dollar helps, and this gas tax cut is another way we’re keeping costs down for Ontario families and businesses,” said Premier Doug Ford. “As we continue to deal with lingering inflation, our government is continuing to provide people and businesses relief at the pumps for another six months.”
Since July 1, 2022, Ontario has lowered the gasoline tax by 5.7 cents per litre and the fuel tax by 5.3 cents per litre. The government is proposing to extend the rate cuts so the tax rate on gasoline and fuel (diesel) would continue to remain at 9 cents per litre until June 30, 2024.
“With the Bank of Canada’s high interest rates, and as inflation continues to put pressure on household budgets across Ontario, our government is helping to keep costs down for the people of Ontario,” said Minister of Finance, Peter Bethlenfalvy. “On Thursday, I will provide an update on our plan that will continue with our government’s targeted, responsible approach so we have the flexibility needed to get through this economic uncertainty while laying a strong fiscal foundation for future generations.”
The proposed extension to the gasoline and fuel tax rate cuts builds on the government’s other measures to help put more money back into people’s pockets, including:
The government continues to call on the federal government to, at the very least, pause increases to the carbon tax.
"The announcement to extend fuel tax relief for the trucking industry is a measure that all Ontarians should applaud. Virtually every item or product Ontarians have at home or at their places of business was moved by truck. Fuel is typically the second leading cost behind labour for the trucking industry. Keeping fuel costs down, helps fight inflation. The Ontario Trucking Association applauds the Government of Ontario for its leadership and investment in helping fight inflation."
- Stephen Laskowski
President and CEO, Ontario Trucking Association
"The best thing governments can do to help make life more affordable for taxpayers is to cut taxes. The Ontario government’s gas tax cut has saved the typical Ontario family hundreds of dollars over the past 18 months and this announcement will ensure that this critical relief continues into 2024. This gas tax cut extension is great news for Ontario taxpayers."
- Jay Goldberg
Ontario Director of Canadian Taxpayers Federation