Ontario’s gas tax cut will be made permanent, Ford’s office says ahead of expected price drop at the pumps

A woman gasses up at a gas station in Mississauga, Ont., Tuesday, February 13, 2024. (Christopher Katsarov/The Canadian Press)

The federal government’s decision to axe the consumer carbon tax is not dissuading the Ford government from moving ahead with plans to make the Ontario gas tax cut permanent, a spokesperson for the premier confirmed to CP24.com on Tuesday.

The 5.7- cent per litre cut to the provincial gas tax was first introduced in July 2022 and has been repeatedly extended, dropping Ontario’s tax rate on unleaded gasoline from 14.7 cents per litre to 9.0 cents per litre.

Premier Doug Ford’s office confirmed Tuesday that he will make good on a campaign promise to make the cut permanent.

Last week, Prime Minister Mark Carney announced that the federal government would scrap the consumer carbon tax, a move which is expected to lower the price of gasoline in April. The current carbon tax levy on gasoline sits at 17.61 cents a litre and when factoring in HST, motorists can expect to see the price at the pumps drop by 19.9 cents a litre as of April 1, industry analyst Dan McTeague told CP24.com.

In a social media post, Ford, an outspoken opponent of the carbon tax, expressed his support for the decision.

“Good riddance to the worst tax ever,” the premier wrote.

The premier’s office did not directly address what the future holds for the industrial carbon tax in the province.

“In light of President Trump’s tariffs, all levels of government need to look for ways to lower costs, support people and businesses, and make us more economically competitive,” Grace Lee, a spokesperson for the premier’s office, said in a written statement to CP24.com.