Ontario's Gas Tax Cut May Be Extended For A Year & Here's How Much You'll Save

Ontario is proposing legislation to extend the gas tax cut for another year, which means more savings for Ontarians.

Premier Doug Ford announced the possible extension in a press conference on November 13 and said it could bring $195 in savings for the average Ontario household by December 2023.

"It doesn't matter if you're a construction worker, a taxi driver, a small business owner, a senior living on fixed income or a newcomer to our province just starting their career, everyone is concerned about the same thing, and that's how expensive life is getting for them," said Ford.

"From gas to groceries, prices are higher, and that's putting real pressure on household budgets. The fact is people need a little bit of help."

On July 1, 2022, Ford's government implemented the gas tax cut, cutting the gas tax by 5.7 cents per litre and the fuel tax by 5.3 cents per litre to provide some relief at the pumps until December 31, 2022.

Legislation for an extension on the gat tax cut will be proposed Monday as part of the 2022 Fall Economic Statement.

If passed, the new proposed extension will allow Ontarians to see gas savings for another year up until December 31, 2023.

According to a press release, the extension would "see the rate of tax on gasoline and fuel (diesel) remain at 9 cents per litre until December 31, 2023."

"We know that every dollar helps, and this gas tax cut is another way we're delivering savings to Ontario households. From permanently removing tolls on Highway 412 and 418 and eliminating license plate sticker fees, we have taken concrete action to make life more affordable for Ontario families," said Ford.

Finance Minister Peter Bethlenfalvy said the proposed legislation will help keep money in Ontario families' pockets during this period of "economic uncertainty."

"Ontario, like the rest of the world, will continue to face economic challenges in the year ahead. This is why our government's Fall Economic Statement will take a responsible approach to advance our plan to build while also being ready for any challenge that may come our way," said Bethlenfalvy.