Ontario Prolongs Gasoline and Fuel Tax Reductions Until June 30, 2024

TORONTO — The Ontario government is set to introduce legislation in its forthcoming 2023 Fall Economic Statement, aiming to extend the reductions in gasoline and fuel tax rates until June 30, 2024. This initiative, if approved, is designed to assist Ontario families and businesses in managing their expenses, potentially resulting in average savings of $260 per household since the inception of the tax cuts.

Starting from July 1, 2022, Ontario reduced the gasoline tax by 5.7 cents per liter and the fuel tax by 5.3 cents per liter. The government is now suggesting an extension of these rate reductions, maintaining the gasoline and diesel fuel tax rates at 9 cents per liter until June 30, 2024.

The proposed extension of the gasoline and fuel tax rate reductions is part of the government’s broader effort to ease financial burdens and provide financial relief to Ontario residents. These measures include:

1. Delivering annual savings of $1.1 billion, totaling $3.3 billion since March 2020, by reimbursing license plate renewal fees and stickers for vehicle owners in Ontario.
2. Eliminating local transit fares on most local transit agencies in the Greater Golden Horseshoe for those traveling to and from GO Transit, enhancing affordability and convenience for families and workers during their daily commutes.
3. Raising the general minimum wage by 6.8 percent to $16.55 per hour, effective as of October 1, 2023.
4. Allocating an estimated $115 million through the Ontario Seniors Care at Home Tax Credit this year, benefiting over 200,000 low-to moderate-income seniors with eligible medical expenses.

The government continues to advocate for a pause in the federal government’s carbon tax increases, or at the very least, a reconsideration of such policies.

“We know that every dollar helps, and this gas tax cut is another way we’re keeping costs down for Ontario families and businesses,” said Premier Doug Ford “As we continue to deal with lingering inflation, our government is continuing to provide people and businesses relief at the pumps for another six months.”