Ontario's six-month gas tax cut starts. Here's what you need to know
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.
American actor Anne Heche will be taken of life support on Sunday, nine days after suffering severe injuries in a fiery car crash, as a compatible person was found to receive her donated organs, a spokesperson said.
FBI testing of the gun used in the fatal shooting on the movie set of 'Rust' found that the weapon handled by actor Alec Baldwin could not be fired without pulling the trigger while the gun was cocked, according to a newly released forensics report.
About 4,000 beagles are looking for homes after animal rescue organizations started removing them from a Virginia facility that bred them to be sold to laboratories for drug experiments.
Republicans stepped up calls on Sunday for the release of an FBI affidavit showing the underlying justification for its seizure of documents at former President Donald Trump's Mar-a-Lago home.
A new study is offering a dire prediction for the U.S. state of California, where scientists say catastrophic flooding could become twice as likely in the future due to the effects of climate change.
Authorities in Norway said Sunday they have euthanized a walrus that had drawn crowds of spectators in the Oslo Fjord after concluding that it posed a risk to humans.
A new study suggests that Antarctica’s ice shelves may be melting faster than previously believed, which is causing sea levels to rise at a more rapid pace and accelerating the dangers of climate change.
A fire ripped through a packed Coptic Orthodox church during morning services in Egypt's capital on Sunday, quickly filling it with thick black smoke and killing 41 worshippers, including at least 15 children.
Quebec's new language law has dozens of municipalities in the province shoring up their bilingual status, with few considering giving up the right to serve their citizens in both English and French.
Voters interested in the Conservative Party of Quebec (PCQ) may be disappointed by its platform, announced Sunday in Drummondville, as it is silent on many issues and vague on many others.
Multiple police agencies – including the London Police Service -- are looking for a fugitive with ties to London and the GTA who is wanted on multiple alleged weapons charges.
A string of pickup truck thefts using relay and reprogramming technology, a crash at a busy Kitchener roundabout, and a big golf shot for a big price round out the top stories of the week.
It was a sea of people wearing green and white at the James Jerome Sports Complex Sunday morning as Sudburians gathered to mark Pakistan Independence Day. This is the 75th anniversary of the country's independence from British colonial rule.
The Flour Mill Community Farm’s 6th annual Open Farm is an opportunity for the community to tour the space, sample some of the farm’s produce and enjoy local musical entertainment live.
A five-kilometre section of the Queensway is expected to reopen in time for the Monday morning commute, after the busy highway was closed over the weekend for construction.
A LaSalle, Ont., resident says he’s not happy with how long it took for Essex Powerlines to provide details on a recent outage that left nearly 1,000 properties in LaSalle without power.
A diving accident at 14-years-old left Brian Parker paralyzed from the chest down. Now at age 49, he's without the person who was caring for him full-time until just last week, after his 68-year-old mother was diagnosed with breast cancer.
The German government on Friday issued a statement confirming the agreement will be signed Aug. 23 in Stephenville, where a Newfoundland based company plans to build a zero-emission plant that will use wind energy to produce hydrogen for export.
Jason Kenney and United Conservative Party leadership hopeful Danielle Smith traded words about her proposed sovereignty act this weekend, with Smith saying the premier should not interfere in the contest.
Three people were rescued and dozens more have been displaced after a third-alarm blaze at a Burnaby apartment complex in the early hours of Sunday morning, according to the fire department.
A B.C. girl is making her voice acting debut in a new animated Netflix series, saying she's excited that they chose her to bring the spunky, South Asian lead to life.
Jason Kenney and United Conservative Party leadership hopeful Danielle Smith traded words about her proposed sovereignty act this weekend, with Smith saying the premier should not interfere in the contest.
