Ontario drivers are in for a double dose of relief at the pumps, as Premier Doug Ford’s office confirmed Tuesday that the province’s gas tax cut will become permanent, just as the federal government prepares to eliminate the consumer carbon tax. The move fulfills a key campaign promise by Ford and sets the stage for significant savings for motorists starting in April.
The provincial gas tax cut, first implemented in July 2022, slashes 5.7 cents per litre off the cost of fuel, reducing Ontario’s tax rate on unleaded gasoline from 14.7 cents to 9.0 cents per litre. Since its introduction, the cut has been extended multiple times, and Ford’s office has now affirmed that it will be a permanent fixture. “Premier Ford is delivering on his commitment to make the gas tax cut permanent, ensuring long-term savings for Ontarians,” said Grace Lee, a spokesperson for the premier’s office, in a statement to CP24.com.
This decision comes on the heels of Prime Minister Mark Carney’s announcement last week to scrap the federal consumer carbon tax, a policy Ford has long criticized. The carbon tax currently adds 17.61 cents per litre to gasoline prices, and with HST factored in, its removal is expected to lower pump prices by 19.9 cents per litre starting April 1, according to industry analyst Dan McTeague. Ford celebrated the federal move on social media, declaring, “Good riddance to the worst tax ever.”
Together, these measures could see Ontario drivers saving over 25 cents per litre at the pumps next month, a significant relief amid economic pressures. The Ford government’s decision to lock in the gas tax cut was not swayed by the federal policy shift, signaling a steadfast commitment to reducing costs for residents. However, the premier’s office remained silent on the future of Ontario’s industrial carbon tax, leaving some questions unanswered.
The backdrop of these changes includes U.S. President Donald Trump’s recent tariffs on Canadian goods, which have heightened the need for economic competitiveness. “In light of President Trump’s tariffs, all levels of government need to look for ways to lower costs, support people and businesses, and make us more economically competitive,” Lee added, underscoring the broader context driving these policy decisions.
As Ontarians prepare for lower fuel prices, the permanent gas tax cut reflects Ford’s ongoing focus on affordability, a cornerstone of his administration’s agenda since taking office. With both federal and provincial measures aligning to ease the burden at the pumps, drivers across the province can look forward to a more budget-friendly spring.