Keep Costs Down for Families Announcement

To continue keeping costs down for families and businesses, the Ontario government is introducing proposed legislation through its spring 2024 Budget that would, if passed, extend the existing gasoline and fuel tax rate cuts until December 31, 2024.

The Ontario government temporarily cut the gasoline tax by 5.7 cents per litre, and the fuel (diesel) tax by 5.3 cents per litre, from July 1, 2022 to June 30, 2024. Today’s announcement would ensure the rates remain at 9 cents per litre until December 31, 2024, saving Ontario households $320 on average over the two and a half years since the tax rate cuts were first introduced.

“Our government understands that high inflation and interest rates are hurting Ontario workers and their hard-earned paycheques,” said Peter Bethlenfalvy, Minister of Finance. “That’s why we acted early to keep costs down and will continue to support Ontario families at the pump with our latest gas tax cuts.”

The proposed extension to the gasoline and fuel tax rate cuts builds on the government’s additional measures to help put more money back into people’s pockets, including:

  • Eliminating the licence plate renewal fee in March 2022, saving the average household $600 to date.
  • Banning new road tolls on 400-series highways in Ontario and permanently freezing driver’s licence and photo card fees, saving drivers an estimated $66 million over the next five years.
  • Launching One Fare, which will save daily riders on participating systems an average of $1,600 each year
  • Introducing legislation that, if passed, would give Ontario voters a veto over a new provincial carbon tax, cap-and-trade system or other carbon pricing program.
  • Ending the Drive Clean Program, saving taxpayers over $40 million every year.

Quick Facts

  • The government will provide more information on its plan to keep costs down for families and businesses in the 2024 Budget, to be released on March 26.
  • The price paid at the pump is made up of the cost of crude oil, wholesale margins, retail margins, federal excise tax, the federal carbon tax, Ontario gasoline/fuel tax and HST.
  • Ontario continues to call on the federal government to eliminate the federal carbon tax, which increased to 14.31 cents per litre on gasoline and 17.38 cents per litre on diesel on April 1, 2023 and is scheduled to increase by 23 percent on April 1, 2024.

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