Ontario's six-month gas tax cut starts. Here's what you need to know
Ontario drivers experienced some relief from record-setting prices at the pump on Friday as the province's gas tax cut came into effect.
The Ontario government cut the gas tax by 5.7 cents per litre until the end of the year, though Premier Doug Ford said he would consider an extension if inflation remains high.
Drivers noticed the impact Friday at gas stations in the Toronto-area, where prices dropped around 11 cents overnight to $1.93 -- only partly attributable to the tax cut.
"Every dollar counts," said Matthew Johnston as he filled up a cargo van at a downtown Toronto gas station. "This will actually help a bit."
Gas prices in Toronto are up nearly 40 per cent since the start of the year, reaching a record high $2.15 per litre in early June before ending the month around $2.00 per litre.
Johnston, who runs an upstart catering business and works at a winery, says the soaring price of gas paired with inflation has forced him to cut back on spending.
"I haven't been able to go out or do anything anymore. It's honestly just all gone to gas, rent -- you know, just the cost of living," he said.
He usually puts $60 in the tank to make his near-daily commute to the Niagara area. On Friday, he opted to try a $40-fill-up.
The tax cut is expected to cost the province $645 million while it's in effect. Analysts note Ford may face a tough decision in December when the measure expires and with prices likely to rise again before Christmas.
The legislation passed this spring will also cut fuel tax, which covers diesel, by 5.3 cents per litre until Dec. 31.
Hermain Kazmi called the tax cut a move in the right direction as he pumped gas into his car. He said high gas prices recently pushed him to use more public transit, but he expected to return to his previous driving habits if prices came down.
Kazmi was "100 per cent" in support of the government extending the tax cut into 2023, even expressing the hope it could lead to more financial relief.
"I don't think a 10 cent drop would make a huge impact. It's a good change but I think it needs to come down lower depending on how much inflation is and how salaries have not matched how inflation has gone up," he said.
The soaring price of gas, a key driver of inflation, is tied to an increased demand for oil as the economy reopens after the COVID-19 pandemic. The situation has also been exacerbated by a global supply crunch caused in part by Russia's invasion of Ukraine.
Ali Avali stopped to fill up his SUV on the way to a park outside Toronto, with his dog, an Alaskan Malamute, perched in the backseat.
"The only reason I drive is because of this guy. I take him out to do a bit of running in the country," he said.
Once the loan is paid off on the SUV, Alavi said he plans to switch to an electric vehicle. He said he opposed a gas tax cut, suggesting that if prices continued to go up, more people may also be inclined to make the switch.
When I see gas prices going up, it doesn't really piss me off," he said.
This report by The Canadian Press was first published July 1, 2022.
CTVNews.ca Top Stories
Large numbers of New York City police officers begin entering Columbia University campus
Large numbers of New York City police officers began entering the Columbia University late Tuesday as dozens of pro-Palestinian protesters remained on the campus.
Poilievre kicked out of Commons after calling Prime Minister Justin Trudeau 'wacko'
Testy exchanges between the prime minister and his chief opponent ended with the Opposition leader and one of his MPs being ejected from the House of Commons on Tuesday -- and the rest of Conservative caucus walking out of the chamber in protest.
Baby, grandparents among 4 people killed in wrong-way police chase on Ontario's Hwy. 401
A police chase which started with a liquor store robbery in Bowmanville Monday night ended in tragedy some 20 minutes later when a suspect fleeing police entered Highway 401 in the wrong direction and caused a pileup which killed an infant and the child's grandparents, as well as the suspect, investigators say.
Freeland leaves capital gains tax change out of coming budget implementation bill, here's why
Deputy Prime Minister and Finance Minister Chrystia Freeland will be tabling yet another omnibus bill to pass a sweeping range of measures promised in her April 16 federal budget, though left out of the legislation will be the government's proposed capital gains tax change.
Sword-wielding man attacks passersby in London, killing a 14-year-old boy and injuring 4 others
A man wielding a sword attacked members of the public and police officers in a northeast London suburb Tuesday, killing a 14-year-old boy and injuring four other people, British authorities said.
Man dies after suffering cardiac arrest while waiting in ER, widow wants investigation
When an ambulance took David Lippert to the hospital in March of 2023, the 68-year-old Kitchener, Ont., executive was hoping to find out why he was feeling weak and unable to walk. Some 24 hours later, he was found unresponsive in the ER.
CSE says it shared information on Chinese hacking of parliamentarians in 2022
While several MPs and senators say they were only recently made aware of China-backed hackers targeting them, the Communications Security Establishment, one of Canada's intelligence agencies, says it shared information about the incident with parliamentary officials in June of 2022.
WATCH Arnold Schwarzenegger spotted filming in Elora, Ont.
The name of the project has not been officially released although it’s widely believed to be the Netflix series FUBAR.
Eviction for landlord's use was legitimate, despite owners' partial move, B.C. court rules
A B.C. judge has upheld the eviction of a family from their North Vancouver townhouse, finding that the landlords did not take an unreasonable amount of time to move into the home after the tenants vacated it.