Province keeping costs down for families in the face of tariffs and economic uncertainty
News from the Office of Ontario Premier Doug Ford
May 14th, 2025 on Niagara At Large
A Brief Forward Note from Doug Draper at Niagara At Large – I trust I wouldn’t be alone if I asked – Why not bring back the gas tax and use the money raised from it to support the growth of renewable energy projects across the province?
And how about using the gas tax as another incentive for getting more people out of their cars, not to mention all of those gas-guzzling pickups, and using public transit?
Is the answer to those questions a flat ‘NO’? Apparently it is given this latest news from the premiere that comes at a time when he is repeatedly using Trump’s tariff war as cover for taking us backwards when it comes to any and all efforts to address the climate crisis and protect what is left of our natural heritage.
Now back to Premier Ford’s News Release
As part of its plan to protect Ontario, the government is continuing to lower costs for hard-working families, support local businesses and put more money back into people’s pockets through its plan to permanently cut the gasoline and fuel tax rates, which would save households, on average, about $115 per year going forward.
The government is also proposing to remove tolls from the provincially owned Highway 407 East, which is expected to save daily commuters an estimated $7,200 annually.
“I know that families and business owners are worried about rising costs, especially as U.S. tariffs threaten to raise the price of everyday essentials,” said Premier Doug Ford.
“That’s why we’re cutting the gas tax permanently and taking tolls off Highway 407 East, and that’s why we’ll always keep looking for ways to put more money back into the pockets of Ontario families.”
To provide ongoing relief to households and businesses in Ontario, the government is introducing legislation through its 2025 Budget that would, if passed, make the cut to the gas and fuel tax rate permanent, keeping the provincial rates of tax at nine cents per litre.
This permanent measure would support continued relief at the pumps, building on the $1.7 billion that households have saved since the government first announced temporary cuts to the gasoline and fuel tax rates in 2022.
“Ontario families have seen prices on everyday items go up over the last several years,” said Peter Bethlenfalvy, Minister of Finance. “To help Ontarians cope with the high cost of living and the impacts of the economic uncertainty caused by tariffs, we are continuing to take action to ease the pressure and do more to help lower costs for households.”
To help lower costs and fight gridlock, the government is introducing legislation that would, if passed, permanently remove tolls from the provincially owned section of Highway 407, from Brock Road to Highway 35/115, effective June 1, 2025. This is the last stretch of provincially owned tolled highway in Ontario and follows the government’s previous removal of tolls from Highways 412 and 418, and its recent legislation banning new road tolls on any public roadway in Ontario.
“Our government is making it easier and more affordable for Ontarians to get where they need to go, when they need to get there,” said Prabmeet Sarkaria, Minister of Transportation. “The measures announced today will not only help to reduce traffic and commute times, but they will help put money back in the pockets of hardworking families at a time when it matters most. This is another step in our work to protect Ontario by building a more efficient, affordable and accessible transportation network.”
The government is committed to keeping costs down for commuters. Additional initiatives the government has taken include the elimination of licence plate renewal fees and stickers and freezing fees for driver’s licences and Ontario Photo Cards, which combined with previous cuts to gas and fuel tax rates have saved individuals and families over $1.8 billion in the last year.
“Our government is focused on protecting jobs and reducing costs for families, as we stand up for Canada against U.S. tariffs,” said Stephen Lecce, Minister of Energy and Mines. “By permanently cutting the gas tax, we’re fulfilling our commitment to put more money back into the pockets of hardworking families, where it belongs.”
More information about the government’s plan to protect Ontario, grow our economy and make Ontario the most competitive jurisdiction in the G7 to invest will be included in the 2025 Budget, to be released on May 15, 2025.
Quick Facts
- Ontario temporarily cut the gasoline tax rate by 5.7 cents per litre and the fuel (diesel) tax rate by 5.3 cents per litre on July 1, 2022, and has extended the cuts four times.
- The price consumers pay at the pump is made up of the cost of crude oil, wholesale margins, retail margins, federal excise 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 or aviation fuel.
- While the government welcomes the federal decision to set the carbon tax rate to zero effective April 1, 2025, it continues to call for the complete repeal and elimination of the carbon tax.
- In 2024, Ontario passed legislation that prohibits the province from introducing new tolls on provincial highways.
From Niagara At Large, here are some thoughts on this subject from Canadian environmentalist David Suzuki. Just open the link to read them – https://pancouver.ca/david-suzuki-more-than-an-energy-shift-we-need-a-paradigm-shift/ .
NIAGARA AT LARGE Encourages You To Join The Conversation By Sharing Your Views On This Post In The Space Following The Bernie Sanders Quote Below.
“A Politician Thinks Of The Next Election. A Leader Thinks Of The Next Generation.” – Bernie Sanders
Niagara At Large 