Ontario Is Cutting Gas Tax Prices Starting This Week & Here's What It Means For Your Wallet

Premier Doug Ford's gas tax cut will go into effect on July 1, and Ontarians may finally feel some relief at the pumps.

Ford's proposed legislation to slash gas and fuel tax was first presented in April 2022 and "received Royal Assent," which means gas tax will be cut by 5.7 cents per litre and fuel tax by 5.3 cents per litre for the next six months.

"The reality is that people simply can't afford the price of gas right now. It's a real problem, and our government is doing something about it. And so, as promised, we're cutting the provincial gas tax effective July the 1, for the rest of the year," said Ford in a press conference on June 30, 2022.

"Ontario's gas tax will be cut by nearly 40%," the Premier emphasized.

From July 1 to December 31, cuts in gas and fuel tax in combination with "the 4.3 cents per litre savings from the elimination of the previous government's cap and trade carbon tax" will result in a 10-cent reduction per litre in provincial taxes and charges on gas, according to a press release.

Gas tax cuts, along with "the elimination and refunding of licence plate renewal fees," will bring "significant direct savings" to vehicle owners in Ontario, according to the Ontario government, with average household savings of $465 in 2022.

Although the Ontario government isn't stopping at provincial relief, they are pushing the federal government to reduce the carbon tax cost too, which saw an increase on April 1, 2022.

"People are in desperate need of a little relief right now. We're stepping up with 10 cents, and yeah, it's probably going to ding us a little bit on the budget, but the feds have to do the same thing," said Ford.

"Even if it's temporary. We know the peak travelling season is in the summer, people are going up north, they're travelling away, you know, with their families and give them a break," he added.