Ontario motorists may soon see some savings, as the provincial government proposes a permanent gas tax reduction and the elimination of tolls on the public portions of Highway 407 in its budget this week.
Premier Doug Ford announced his intention to make the gas tax reduction permanent during a press conference on May 13, saying his administration is proposing legislation in the 2025 budget that, if approved, would result in an annual savings of $115 for the average household.
The government will also be introducing legislation to permanently remove tolls as of June 1, which the government estimates would save some daily commuters as much as $7,200 annually.
“This is just the latest step in our plan to protect Ontario by keeping costs down and making Ontario more competitive than ever,” Ford said during the Pickering, Ont., press conference.
The government first cut the provincial gas tax rate by 5.7 cents and diesel by 5.3 cents in July 2022, and has extended the cuts four times since. Ford originally enacted the tax break in a bid to help Ontarians deal with the carbon tax and the ongoing cost-of-living crisis.
Although carbon pricing was set at 0 percent by Prime Minister Mark Carney in March, Ford vowed during his recent election campaign to find ways to ease the burden on workers and families impacted by U.S. tariffs.
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The elimination of tolls on a provincially owned stretch of Highway 407 East from Pickering to Clarington would also fulfill an election promise made by Ford while seeking his third term as premier.
“Once the legislation is passed, there will not be one single publicly owned tolled highway left in Ontario, and that’s thanks to our government’s ban on new road tolls in the province,” Ford said. “There will never, ever be a road toll in Ontario again.”
While the government’s announcement offers some relief for drivers, the vast majority of Highway 407 is still operated and tolled by 407 ETR, a private corporation.
Ford has previously said he would consider buying back the privately owned section of Highway 407 or paying for trucks to travel on it to clear gridlock on Highway 401 throughout the Toronto area, but neither topic was broached during the press conference.
The province also did not disclose the costs associated with either of the proposed cuts during the press conference. The gas tax cut has cost the province $1.7 billion since it was first introduced.
Finance Minister Peter Bethlenfalvy is scheduled to present Ontario’s first post-election budget at Queen’s Park on May 15. It is anticipated the document will focus on safeguarding Ontario’s economy against U.S. tariffs.
