Doug Ford to extend Ontario gas tax cut until end of 2024

The Ontario government will extend its gas and fuel tax rate cut until the end of the year.

• Download our app to get local alerts on your device
• Get the latest local updates right to your inbox

The cut, which temporarily slashed the gasoline tax by 5.7 cents per litre, and the fuel tax by 5.3 cents per litre, was scheduled to expire on June 30.

On Monday, Premier Doug Ford announced it will now remain in place until Dec. 31.

The cut will be part of the province’s March 26 budget.

“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,” Ford said.

The government says its tax rate cut has saved Ontario households an average of $320 over the last two and a half years since it was first introduced in 2022.

The cut was proposed as a way to combat inflation as well as the federal carbon tax, which imposes a tax on gasoline in provinces that don’t have their own levy on green house gas emissions.

For gasoline, the Ontario government has said the federal carbon tax would increase costs at the pump from about 14.31 cents per litre to about 37.43 cents per litre in 2030.

As of April 1, the tax is schedule to increase to about 17.71 cents per litre in Ontario.

On Monday, Ford reiterated his call for the federal carbon tax to be cancelled or paused.

“This tax is costing hardworking people more money to drive, to work, or drop off the kids to hockey practice,” he told reporters in Mississauga.

“It's going to increase the cost of everything. It's going to hurt every single person in Ontario.”

Ford’s government is also proposing legislation that would require a referendum if future governments decide to institute a carbon tax in Ontario.

If passed, voters would get a “direct say” over any new provincial carbon tax, cap-and-trade system or other carbon pricing program.

• Ontario proposes referendums for future carbon taxes

Future governments can repeal this legislation if they have enough support.

The changes appear to be part of a direct attack against Ontario Liberal Leader Bonnie Crombie, who was named in Ford’s announcement as a supporter of carbon tax, despite the fact that she has publicly said she will not impose this strategy if elected leader.

“Friends, don't be fooled. Bonnie Crombie continues to support carbon taxes in this tax increase. The Queen of the carbon tax won't speak out against next week's tax hike.”

The provincial liberals spent early last week distancing themselves from their federal counterparts, pledging not to institute a carbon tax themselves while sidestepping questions about whether the national policy has their support.