KAWARTHA LAKES-The Ontario government has announced its 2022 Fall Economic Statement will propose legislation that would, if passed, extend the current gas and fuel tax rate cuts to December 31, 2023.
“At a time when inflation has reached the highest levels in over four decades, we know families are feeling the pressure from rising prices on everything from gas to groceries,” said Premier Doug Ford. “To continue providing real relief, our government is proposing to extend the gas tax cut for another year to put more money back in peoples’ pockets where it belongs.”
The proposed extension of the gas and fuel tax rate cuts for an additional year would save Ontario households $195 on average between July 1, 2022, and December 31, 2023. This extension follows legislation passed this spring that cut the gas tax by 5.7 cents per litre and the fuel tax by 5.3 cents per litre for six months, from July 1, 2022 to December 31, 2022.
“By proposing to extend the gas and fuel tax rate cuts our government is helping Ontario families keep more money in their pockets during this time of economic uncertainty,” said Minister Bethlenfalvy. “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.”
This proposed extension would see the rate of tax on gasoline and fuel (diesel) remain at 9 cents per litre until December 31, 2023. This would save Ontario households $195 on average between July 1, 2022, and December 31, 2023.
Officials say the price paid at the pump is made up of the cost of crude oil, wholesale margins, retail margins, federal excise tax, the federal carbon tax, Ontario gasoline/fuel tax and HST.