Ontario Government Plans to Cut Gas Tax; Proposing Taking Tolls Off Highway 407 East

The Ontario government plans to permanently cut the gasoline and fuel tax rates and proposes to remove tolls from the provincially-owned areas of Highway 407 East, announced on Tuesday.

Photo courtesy of the Ontario Government.

The gas tax is estimated to save about $115 per year and the proposed toll removal would save daily commuters roughly $7,200 annually according to Doug Ford, Ontario Premier.

“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,” he’s aid. “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.”

The proposals are through the Ontario government, which is introducing legislation through its 2025 Budget. If passed, it would permanently cut the gas and fuel tax rate, resulting in provincial tax rates at nine cents per litre.

“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.”

The provincial government is also introducing legislation to permanently remove tolls on Highway 407, from Brock Road to Highway 35/115, effective June 1. This is the last stretch of Ontario's provincially owned and tolled highway. It 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.”

Engage with us on social media on Twitter, Instagram, Facebook, Tiktok, Youtube and LinkedIn. Write to us at tips@ptbocanada.com. Sign up for our newsletter here.

Ontario Government Provides Funding For Public Transit in Peterborough Under Gas Tax Program

The Ontario government is providing more money to support the expansion and improvement of public transit services in the County of Peterborough; giving $1,827,406 as part of the province’s gas tax program.

file photo.

“We know that municipal transit systems are essential to the success of our communities. They connect people and families to jobs, education, medical appointments, groceries and housing,” said Dave Smith, MPP for Peterborough- Kawartha. “Under Premier Ford’s leadership, our government continues to step up to the plate to provide the funding municipalities need to ensure transit remains a safe and reliable option in communities across Ontario.”

Funding for the gas tax program is determined by the number of litres of gasoline sold in the province during the previous year. Municipalities that support public transit services in their community receive two cents per litre of provincial gas tax revenue collected.

To make up for reduced gas sales due to ongoing recovery from the COVID-19 pandemic, this year’s gas tax program includes one-time additional funding of $80 million to help ensure municipalities can continue to support their transit systems.

“Public transit is a key driver of economic growth in Ontario, helping people get to where they need to go, whether it is to work, school, or run errands. As more people return to public transit, our government is providing municipalities with the funding they need to accommodate growing ridership, while ensuring they can continue to deliver safe and reliable transit service for people in their communities,” said Caroline Mulroney, Minister of Transportation.

Gas tax funding can be used to extend service hours, buy transit vehicles, add routes, improve accessibility or upgrade local infrastructure.

Engage with us on social media on Twitter, Instagram, Facebook and Tiktok. Write to us at tips@ptbocanada.com. Sign up for PTBOBuzz newsletter here.

Get the Best Gas Prices in Peterborough

It's always nice to know where the best deal is before gassing up. Well thanks to GasBuddy.com, you can. The site shows the best (and worst) gas prices in almost every city in North America—including Peterborough.

Also, if you have an iPhone and fill up at Petro-Canada, don't forget to check out their free app. It gives you directions to the nearest Petro-Canada gas station and tells you the current price per litre.

[Peterborough Gas Prices]

Tip us at tips@ptbocanada.com. Follow us on Twitter @Ptbo_Canada.