The Ontario government is introducing legislation in its spring 2024 Budget to extend the existing gasoline and fuel tax rate cuts until December 31.
The announcement comes in advance of the federal government about to increase its carbon tax. The federal carbon tax is increasing on April 1. The price per tonne will increase from $65 to $80 and the cost per litre at the gas pump will rise from 14.3 cents to 17.6 cents.
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“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 Premier Doug Ford.
The Canadian Taxpayers Federation applauds the provincial extension.
“This gas tax cut extension is a big win for Ontario taxpayers at a time when struggling families really need it,” said CTF Ontario Director Jay Goldberg. “It means the average two-car family will continue to save roughly $35 a month at the pumps."
The Ontario government temporarily cut the gasoline tax by 5.7 cents per litre, and the fuel (diesel) tax by 5.3 cents per litre, from July 1, 2022 to June 30, 2024. Today’s announcement would ensure the rates remain at 9 cents per litre until December 31, saving Ontario households $320 on average over the two and a half years since the tax rate cuts were first introduced.
“Our government understands that high inflation and interest rates are hurting Ontario workers and their hard-earned paycheques,” said Peter Bethlenfalvy, Minister of Finance. “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.”