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Ontario's gasoline and fuel tax rate cuts proposed extension

Getty Images on Unsplash (one time use)
Getty Images on Unsplash (one time use)

The Ontario Government plans to extend the gasoline and fuel tax cut in its 2023 Fall Economic Statement, expected to be released on November 2.

Since the Conservatives have overwhelming control of the legislature, this proposed extension of the gasoline and fuel tax rate cuts from December 31, 2023, until June 30, 2024, will face no real opposition.

The extension is projected to save households an additional $65 who, on average, consume 44 litres per week.

Since July 1, 2022, the Ontario government has reduced gasoline and fuel taxes by 5.7 cents per litre for the gasoline tax and by 5.3 cents per litre for the fuel tax.

The legislation would extend these rate cuts, ensuring that the tax rate on gasoline and fuel (diesel) remains at 9 cents per litre until the end of June 2024.

Premier Doug Ford emphasized the significance of providing financial relief to Ontario families and businesses during sustained inflation and economic challenges, acknowledging that every dollar counts.

Minister of Finance Peter Bethlenfalvy assures that the government will outline its comprehensive plan on Thursday, November 4, ensuring a responsible and targeted approach to address economic uncertainty and build a robust fiscal foundation.