Toronto, ON: The Canadian Taxpayers Federation is calling on the Ontario government to extend provincial gas tax cut in light of the 26th Annual Gas Tax Honesty Report that shines a light on hidden fuel taxes.

“High gas taxes make high prices at the pump even more painful,” said Jay Goldberg, CTF Ontario Director. “Politicians could make life more affordable right now by reducing the costly tax bill taxpayers face at the pumps.”

The CTF’s Gas Tax Honesty Report shows taxes make up 34 per cent of the pump price in Ontario, which works out to about 56 cents per litre. The average tax on a 64-litre fill-up in the province is $35.97.

Ontarians have the fourth lowest gas tax burden in Canada, thanks to Premier Doug Ford’s temporary 6.4 cent per litre gas tax cut.” 

“The Ford government’s gas tax cut has saved the typical two-car Ontario family nearly $900 since it was introduced just over two years ago,” Goldberg said. “Ford is lowering costs at the pump, but unfortunately Prime Minister Justin Trudeau is doing the opposite by forcing two costly carbon taxes on Ontarians.”

The federal carbon tax currently costs 17.6 cents per litre of gasoline. The federal government imposed a second carbon tax through fuel regulations that took effect last summer. By 2030, when the fuel regulations are fully implemented, the two carbon taxes will increase the price of gasoline by about 54 cents per litre.

“The Trudeau government is tone deaf to keep hiking carbon taxes when Ontarians are struggling to afford to fill up their tanks today,” Goldberg said. “Ontarians need relief and that means the feds need to scrap both carbon taxes.”

The federal government and Ontario calculate sales taxes after the per-litre taxes are added. This tax-on-tax costs drivers in the province an extra 4.8 cents per litre of gasoline.