Ontarians will continue to get a break on gasoline and diesel fuel until the end of the year.
Premier Doug Ford announced on Monday the provincial government is once again extending the gas tax cut, this time until December 31. It had been scheduled to expire on June 30.
The cut temporarily reduced the gasoline tax by 5.7 cents per litre and the diesel fuel tax by 5.3 cents per litre. It has been in effect since July 2022 and ensures the rates remain at 9 cents per litre.
"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 peoples’ pockets. That is why we are extending our gas tax cut,” Ford said.
According to the province, slashing the gas tax has saved Ontario households an average of $320 over the last two and a half years.
“Our government understands that high inflation and interest rates are hurting Ontario workers and their hard-earned paycheques,” said Finance Minister Peter Bethlenfalvy. “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.”
Proposed legislation to extend the cut will be formally introduced in the spring budget, which is to be tabled on Tuesday.
Ford also used his appearance on Monday to again call on the federal government to cancel its planned increase to the carbon tax.
"I urge the federal government to join us by scrapping its planned 23 per cent carbon tax hike on April 1, which will only make life more expensive for hardworking Ontario families,” said Ford.
The carbon tax puts a price on carbon pollution in the country and is meant to encourage Canadians and businesses to reduce emissions by choosing less carbon-intensive options for energy production, home heating, and transportation. It launched in 2019 at $20 per tonne and has risen to $65 per tonne since then.
Each province and territory was given the choice to design its own pricing system tailored to local needs or choose the federal system. The carbon tax came into force in Ontario only after the Ford government scrapped the cap-and-trade system that had been introduced by the previous Liberal government.
Proceeds from the federal pricing system are returned to the province or territory where they are collected.
Eight out of 10 households get more money back through Canada carbon rebate payments than they spend on the carbon tax, according to data provided by the federal government.