Ontario to permanently cut gas tax and remove tolls on part of Highway 407

In response to the ongoing trade war between Canada and the U.S., the provincial government is planning to permanently cut the gasoline and fuel tax rates, noting that the move would save households $115 per year on average going forward. 

The Ford government is also proposing to remove tolls from the provincially owned Highway 407 East, which is expected to save daily commuters approximately $7,200 every year. 

"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," said Premier Doug Ford.

"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."

Ontario temporarily cut the gasoline tax rate by 5.7 cents per litre and the fuel tax rate by 5.3 cents per litre back in July 2022, and has since extended the cuts four times. 

The price consumers pay at the pump is comprised of the cost of crude oil, wholesale margins, retail margins, federal excise tax, Ontario gasoline/fuel tax, and HST.

As part of its 2025 budget, the government is proposing legislation that would make the gas and fuel tax rate cut permanent, locking in the provincial tax rate at nine cents per litre if the measure is approved.

"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," added Bethlenfalvy.

Ontario is also introducing legislation that would, if passed, permanently remove tolls from the provincially owned section of Highway 407, from Brock Road to Highway 35/115, starting June 1, 2025.

This section is the last stretch of provincially owned tolled highway in Ontario and follows the government's previous removal of tolls from Highways 412 and 418.