Ontario Government Proposes Permanent Gas Tax Cut and Removal of 407 East Tolls
The Ontario government announced on May 13, 2025, that it is proposing to make current gas and fuel tax rate reductions permanent and remove tolls on the provincially owned section of Highway 407 East, covering Brock Road to Highway 35/115. According to the announcement, tolls on this section are scheduled to end on June 1, 2025. Both measures are included in proposed legislation as part of the 2025 Budget and would require approval from the Ontario Legislature.
The government stated these proposals respond to increased costs of living, economic uncertainties, and United States tariffs. According to official figures, the temporary gas and fuel tax reductions first introduced on July 1, 2022, have saved households about $1.7 billion. If made permanent, the provincial tax rate for gasoline and diesel would remain at nine cents per litre. Government estimates indicate that an average household would continue to save about $115 per year, and daily commuters travelling the affected section of Highway 407 East could expect to save roughly $7,200 annually once tolls are removed.
The announcement outlined that the affected portion of Highway 407 East is currently the only provincially owned and tolled highway in Ontario. The province previously removed tolls from Highways 412 and 418 and adopted legislation in 2024 that prevents new tolls from being introduced on public provincial highways.
Additional measures highlighted by the Ministry of Finance include the elimination of licence plate renewal fees and stickers, and a freeze on driver’s licence and Ontario Photo Card fees. The ministry reports that, in combination with earlier gas and fuel tax reductions, these measures have saved individuals and families over $1.8 billion in the past year. There are no reported changes to tax rates for leaded gasoline or aviation fuel.
The government stated that further details about these proposals will be included in the 2025 Ontario Budget, set for release on May 15, 2025. Officials named in the release include Premier Doug Ford, Finance Minister Peter Bethlenfalvy, and Transportation Minister Prabmeet Sarkaria, who attributed the measures to efforts to address affordability, tariffs, and economic volatility.