Ontario Extending Gas And Fuel Tax Cuts To Keep Costs Down For Drivers

(MENAFN- Caribbean News Global)

• Extended tax cut would save Ontario households $380 on average

ETOBICOKE, Ontario – As part of the upcoming 2024 Ontario Economic Outlook and Fiscal Review, the Ontario government is keeping costs down for drivers and businesses by introducing legislation that would, if passed, extend the temporary rate cuts on the gasoline and fuel taxes for the fourth time, until June 30, 2025.

These extended cuts would ensure the rates remain at 9 cents per litre through to June 30, 2025, saving Ontario households $380 on average over the three years since the cuts were first introduced.

“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.”

On July 1, 2022, the government temporarily cut the gasoline tax rate by 5.7 cents per litre and the fuel (diesel) tax rate by 5.3 cents per litre. When combined with the province's previous cancellation of the cap-and-trade system, the government is saving drivers 10 cents per litre off the cost of gasoline. This relief is especially important as the federal carbon tax is set to increase again on April 1, 2025, putting further financial strain on families.

“Rising costs over the past few years have put a strain on household budgets, which is why we've taken action to offer relief where we can, including at the pumps,” said Peter Bethlenfalvy, minister of finance.“Our government will always look at ways to put more money back in people's pockets.”

The proposed extension to the gasoline and fuel tax rate cuts builds on a host of measures to make life more affordable for people across the province, including:

• Eliminating the licence plate renewal fee in March 2022, saving the average household $600 to date.
• Banning new road tolls on new and existing highways in Ontario. This ban would also apply to the Don Valley Parkway and the Gardiner Expressway once uploaded to the province. The government removed tolls on Highways 412 and 418 in April 2022.
• 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.
• Ending the Drive Clean Program, saving taxpayers over $40 million every year.
• Requiring the government to first obtain the consent of Ontario voters through a referendum before implementing a new provincial carbon pricing program.

More information about the government's plan to keep costs down for families and businesses will be included in the 2024 Ontario Economic Outlook and Fiscal Review, to be released on October 30, 2024.

Quick facts

• The price consumers pay 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.
• While the government has taken action on tax rates for unleaded gasoline and fuel (diesel), there will be no change to tax rates for leaded gasoline, propane, or aviation fuel.
• Ontario continues to call on the federal government to eliminate the federal carbon tax, which increased to 17.61 cents per litre on gasoline and 21.39 cents per litre on diesel on April 1, 2024 and is scheduled to increase again on April 1, 2025 to 20.91 cents per litre on gasoline and 25.40 cents per litre on diesel.

Additional Resources

• Gas and fuel tax rate decrease
• Gasoline Tax
• Fuel Tax

OPEC daily basket price stood at $74.70 a barrel Thursday, 24 October 2024

Vienna, Austria – The price of OPEC basket of twelve crudes stood at $74.70 a barrel on Thursday, compared with $74.47 the previous day, according to OPEC Secretariat calculations (view archives ).

The OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Djeno (Congo), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Islamic Republic of Iran), Basrah Medium (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).

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