Ontario households to save an average of $380 with extended fuel tax relief
ETOBICOKE — In a bid to mitigate rising costs for Ontario households, the provincial government has announced plans to extend its gas and fuel tax cuts through June 30, 2025. The measure, part of Ontario’s 2024 Economic Outlook and Fiscal Review, is expected to help families save approximately $380 on average since the initiative began, with fuel taxes kept at 9 cents per litre for an additional six months.
The extension marks the fourth time the Ontario government has upheld the temporary tax cuts, which were first implemented on July 1, 2022, as a countermeasure to federal carbon tax increases and other financial pressures. Premier Doug Ford stated that the relief is essential for many families burdened by high interest rates and inflation, particularly as the federal carbon tax is slated to increase again in April 2025.
“Too many Ontario families are struggling as a result of the federal carbon tax and high interest rates, which is why we’re always working to help taxpayers keep more of their hard-earned money,” said Premier Doug Ford. “Our government’s gas and fuel tax cuts are just one way that we’re getting this done, in addition to scrapping the license sticker fee, banning new road tolls on provincial highways, cancelling the previous government’s cap-and-trade program and continuing to stand up for Ontario taxpayers by fighting the federal carbon tax.”
Thunder Bay Relevance: Relief Amid High Costs
For drivers and businesses in Thunder Bay and Northwestern Ontario, the tax cut means extended savings at the pump, potentially alleviating some financial strain for local households. Thunder Bay’s colder climate often results in higher fuel consumption, so these savings could be especially impactful during the upcoming winter months.
Key Financial Relief Measures:
- Gasoline and Fuel Tax Extension: Maintains a reduced tax rate, estimated to save households $380 on average since 2022.
- Licence Plate Renewal Fee Elimination: This move has saved Ontario families over $600 per household since March 2022.
- Banning New Road Tolls: The province has removed tolls on Highways 412 and 418, with plans to apply the toll ban to the Don Valley Parkway and Gardiner Expressway once they are under provincial management.
Future Implications
As the federal carbon tax is set to increase on April 1, 2025, this extension provides continued short-term relief. However, the Ontario government is urging federal action to address the broader financial burden on families as fuel and living costs remain high.
Additional details about Ontario’s cost-saving initiatives will be shared in the forthcoming Economic Outlook and Fiscal Review on October 30, 2024.
