The Ontario government has cut the natural gas tax by 5.7 cents per liter until the end of the year, although Premier Doug Ford said he would consider an extension if inflation remains high.
Drivers noticed the impact Friday at gas stations in the Toronto area, where prices fell about 11 cents overnight to $1.93 — only partially attributable to the tax cut.
“Every dollar counts,” said Matthew Johnston as he filled up a truck at a gas station in downtown Toronto. “That will really help a bit.”
Natural gas prices in Toronto are up nearly 40 per cent since the start of the year, hitting a record high of $2.15 a liter in early June before ending the month around $2.00 a litre.
Johnston, who runs an innovative catering business and works at a winery, says the rising price of natural gas combined with inflation has forced him to cut back on spending.
“I can’t go out or do anything anymore… Honestly, it’s all been down to gas, rent — you know, just the cost of living,” she said.
He typically puts $60 in the tank to make his near-daily commute to the Niagara region. On Friday, he chose to try a $40 supplement.
The tax cut is expected to cost the province $645 million while it is in place. Analysts note that Ford could face a tough decision in December when the measure expires and prices are likely to rise again before Christmas.
Legislation passed this spring would also cut the fuel tax, which covers diesel, by 5.3 cents per liter until December 31.
Hermain Kazmi hailed the tax cut as a move in the right direction as he pumped gas into his car. He said high gas prices have recently prompted him to use public transportation more, but he expects to return to his old driving habits if prices drop.
Kazmi was “100 percent” in favor of the government extending the tax cut until 2023, even expressing hope that it could lead to more economic relief.
“I don’t think a 10-cent drop would have a huge impact. It’s a good change, but I think it needs to go lower depending on how much inflation is and how wages haven’t matched how inflation has gone up,” he said. .
The rising price of natural gas, a key driver of inflation, is linked to increased demand for oil as the economy reopens after the COVID-19 pandemic. The situation has also been exacerbated by the global supply crisis caused in part by Russia’s invasion of Ukraine.
Ali Avali stopped to fill up his SUV on the way to a park outside Toronto, with his dog, an Alaskan Malamute, perched in the back seat.
“The only reason I drive is because of this man. I take him out for a bit of a run in the country,” she said.
Once the loan for the SUV is paid off, Alavi said he plans to switch to an electric vehicle. He said he opposed the gas tax cut, suggesting that if prices continue to rise, more people may also be inclined to make the switch.
When I see gas prices going up, it doesn’t really upset me,” he said.
This Canadian Press report was first published on July 1, 2022.
Jordan Omstead, The Canadian Press
title: " Every Dollar Counts Ontario Gas Tax Cut Brings Some Relief Amid Record Prices " ShowToc: true date: “2022-11-13” author: “Jose Adan”
TORONTO – Ontario drivers got some relief from record prices at the pump on Friday as the province’s gas tax cut took effect.
The Ontario government has cut the natural gas tax by 5.7 cents per liter until the end of the year, although Premier Doug Ford said he would consider an extension if inflation remains high.
Drivers noticed the impact Friday at gas stations in the Toronto area, where prices fell about 11 cents overnight to $1.93 — only partially attributed to the tax cut.
“Every dollar counts,” said Matthew Johnston as he filled up a truck at a gas station in downtown Toronto. “That will really help a bit.”
RELATED: GTA drivers should take a break at the pumps on Canada Day as Ontario cuts gas tax, but it may be short-lived: analyst
Natural gas prices in Toronto are up nearly 40 per cent since the start of the year, hitting a record high of $2.15 a liter in early June before ending the month around $2.00 a litre.
Johnston, who runs an innovative catering business and works at a winery, says the rising price of natural gas combined with inflation has forced him to cut back on spending.
“I can’t go out or do anything anymore. Honestly, it’s all gone to gas, rent — you know, just the cost of living,” he said.
He typically puts $60 in the tank to make his near-daily commute to the Niagara region. On Friday, he chose to try a $40 supplement.
The tax cut is expected to cost the province $645 million while it is in place. Analysts note that Ford could face a tough decision in December when the measure expires and prices are likely to rise again before Christmas.
Legislation passed this spring would also cut the fuel tax, which covers diesel, by 5.3 cents per liter until December 31.
Hermain Kazmi hailed the tax cut as a move in the right direction as he pumped gas into his car. He said high gas prices have recently prompted him to use public transportation more, but he expects to return to his old driving habits if prices drop.
Kazmi was “100 percent” in favor of the government extending the tax cut until 2023, even expressing hope that it could lead to more economic relief.
“I don’t think a 10 cent drop would have a huge impact. It’s a good change, but I think it needs to go lower depending on how much inflation is and how wages are not matching how inflation has gone up,” he said.
The rising price of natural gas, a key driver of inflation, is linked to increased demand for oil as the economy reopens after the COVID-19 pandemic. The situation has also been exacerbated by the global supply crisis caused in part by Russia’s invasion of Ukraine.
Ali Avali stopped to fill up his SUV on the way to a park outside Toronto, with his dog, an Alaskan Malamute, perched in the back seat.
“The only reason I drive is because of this man. I take him out for a bit of a run in the country,” she said.
Once the loan for the SUV is paid off, Alavi said he plans to switch to an electric vehicle. He said he opposed the gas tax cut, suggesting that if prices continue to rise, more people may also be inclined to make the switch.
When I see gas prices going up, it doesn’t really upset me,” he said.
This Canadian Press report was first published on July 1, 2022.
