Ontario Government Announces Permanent Measures to Reduce Costs for Families and Businesses

The Ontario government has announced its intention to permanently cut gasoline and fuel tax rates to nine cents per litre and eliminate tolls on the provincially owned section of Highway 407 East (from Brock Road to Highway 35/115), effective June 1, 2025, pending the passage of the 2025 Budget on May 15, 2025. The permanent gas tax reduction is projected to save households an average of $115 annually, building upon the $1.7 billion in savings from temporary cuts since 2022. Removing Highway 407 East tolls is estimated to save daily commuters approximately $7,200 per year. These measures follow the elimination of tolls on Highways 412 and 418 and the ban on new road tolls in Ontario.

Premier Doug Ford highlighted the government's commitment to easing financial burdens for families and businesses amid rising costs and potential U.S. tariffs. Minister of Finance Peter Bethlenfalvy emphasized that these actions aim to help Ontarians cope with the high cost of living and economic uncertainty. Minister of Transportation Prabmeet Sarkaria noted the dual benefits of reduced traffic congestion and increased affordability for commuters.

Ontario to cut cut gasoline and fuel tax

These initiatives are part of a broader strategy to lower costs for Ontarians, which also includes the elimination of licence plate renewal fees and stickers, as well as frozen fees for driver’s licences and Ontario Photo Cards. These combined measures have reportedly saved individuals and families over $1.8 billion in the last year. The government's overall plan to protect Ontario's economy and enhance its competitiveness will be further detailed in the upcoming 2025 Budget.

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