The Progressive Conservative government introduced legislation Monday that, if passed, would reduce the gas tax by 5.7 cents per liter and the fuel tax – which includes diesel – by 5.3 cents per liter for six months.
The change will take effect on July 1 and will end on December 31.
The announcement comes as pump prices are rising across Canada.  Average prices in Ontario are around $ 1.70 per liter.
“The people of Ontario and across the country were just getting angry, day by day,” said Prime Minister Doug Ford in an irrelevant statement to Osawa’s.
“You see the prices of gas, they are just skyrocketing, prices unprecedented.  And it is time for the government to start putting money back in the pocket of the people instead of in the pocket of the government.
Ford first promised to reduce the provincial gas tax by that amount almost four years ago, during the 2018 election campaign.
One of the promises of the Progressive Conservatives was to reduce gas prices by 10 cents per liter.  The party said this would be achieved through the abolition of Ontario’s cap-and-trade system and the reduction of the provincial gas tax.
The government shut down cap-and-trade shortly after the 2018 election to cut prices by 4.3 cents a liter, but that pushed the federal carbon tax to begin, undoing those economies.  The Ford government tried to fight the lawsuit, but lost.
Last fall, Ford promised to deliver on its promise of 2018 to implement the remaining 5.7 cents cut before the upcoming budget, but then backed down shortly afterwards, saying it would only implement such a cut if the federal government did something similar.
Ford said Monday it was “not the right time” to introduce a cut in gas prices in the fall.
“Gas prices were not where they are at the moment,” he said.
Ford said it continues to encourage Ottawa to implement further cuts.
Two cents per liter of provincial gas tax revenue goes to municipalities for public transport and the government says funding will not be affected.
The Canadian Taxpayers’ Federation welcomed the Ontario announcement, but regretted its temporary nature.
“While Ontario taxpayers will welcome lower gas prices at the pumps, Ford promised Ontarians four years ago that they would receive a permanent reduction in their gas tax,” Ontario CEO Jay Gold said in a written statement.
The New Democrats have called for a gas price hike and introduced a private bill for the third time, but Energy Secretary Todd Smith cited Ontario Energy Agency studies that suggest it would not really cut prices.
This Canadian Press report was first published on April 4, 2022.