TORONTO — Ontario’s temporary tax cut at the gas pumps is being extended until June 30 next year.
As a cost-of-living measure, the Ford government cut the provincial gasoline tax by 5.7 cents per litre and the diesel tax by 5.3 cents per litre on July 1, 2022. The move left a remaining 9 cents per litre in provincial tax on both fuels. The government’s November fall economic statement announced that this lower rate will apply until June 30, 2024.
The Ford government earlier eliminated a 4.3 cents per litre carbon-cap-and-trade tax imposed by the previous Liberal Wynne government.
But what one level of government gives, another is taking away. In Ottawa, the Trudeau government this year raised the federal carbon tax on gasoline to 14.3 cents per litre (up 3.2 cents from 2022) and raised the federal carbon tax on diesel to 17.38 cents (up almost 4 cents from 2022). The escalating federal carbon tax was first applied in 2019.
At the same time, a new federal “clean fuel standard” — sometimes described as a “second carbon tax” — is set to be imposed on refiners in 2024. Federal Environment Minister Steven Guilbeault told the Financial Post earlier this year that the new rule will add another 6 to 13 cents to a litre of gas by 2030.