Just days after the federal government increased its carbon tax on gas by another 2.2 cents a litre, the Ford government is proposing a bill that would cut the cost for drivers for six months.
"Ongoing supply chain challenges and geopolitical conflicts are pushing up the cost of living from gas to groceries," said Finance Minister Peter Bethanfalvy. "With these added pressures, families and businesses need extra help to keep these costs low."
On Friday, Ottawa increased the carbon tax on gas to 11.05 cents a litre and 13.41 cents a litre on diesel.
Under the bill, Ontario's portion of the taxes at the pump would be trimmed by 5.7 cents a litre, dropping the rate to 9 cents from 14.7 cents a litre. The fuel tax would fall to 9 cents a litre, down 5.3 cents to 14.3 cents.
The new tax rate would take effect on Canada Day and remain in effect until December 31, 2022. Along with eliminating the license plate renewal fee, a family in Southern Ontario with two cars could save about $815 this year.
The price paid at the pump is a combination of crude oil costs, wholesale margins, retail margins, federal excise tax, the federal carbon tax, the harmonized sales tax, and the Ontario gasoline/fuel tax.
