Ontario Makes Gas Tax Cut Permanent, Removes Tolls on Highway 407 East
PICKERING — Ontario drivers and families are getting a major cost-of-living break as the province moves to make the gas tax cut permanent and remove tolls from the provincially owned Highway 407 East. The measures, announced today by Premier Doug Ford, are aimed at easing the financial burden on households and businesses amid rising costs and the threat of U.S. tariffs.
“We’re cutting the gas tax permanently and taking tolls off Highway 407 East, and we’ll always keep looking for ways to put more money back into the pockets of Ontario families,” said Premier Doug Ford.
Key Measures Announced:
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Permanent cut to the gas tax, keeping it at 9 cents per litre, saving households an average of $115 per year.
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Removal of tolls from Highway 407 East (Brock Road to Highway 35/115), effective June 1, 2025, saving daily commuters an estimated $7,200 annually.
We’re keeping costs down for families and businesses in the face of tariffs and economic uncertainty.
Today, I announced that we are permanently cutting the gas tax and taking tolls off Highway 407 East, which will save daily drivers $7,200 every year.https://t.co/rUdKYxj2jZ pic.twitter.com/1DrYzVxRyQ
— Doug Ford (@fordnation) May 13, 2025
Supporting Commuters and Businesses
These changes come alongside the Ford government’s other affordability measures, including:
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Elimination of licence plate renewal fees and stickers.
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Freezing of driver’s licence and Ontario Photo Card fees.
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Ban on new tolls for provincial highways.
“These measures will help reduce traffic and commute times, but most importantly, they will help put money back in the pockets of hardworking families,” said Prabmeet Sarkaria, Minister of Transportation.
“In the face of economic uncertainty, we are using every tool to reduce gridlock and keep costs down for workers and families,” added Todd McCarthy, MPP for Durham.
Broad Support from Local Leaders and Industry
The announcements were welcomed by local mayors, regional leaders, and industry associations, who praised the measures as timely, bold actions to address the rising cost of living.
“This is great news for the residents of Durham Region,” said John Henry, Regional Chair.
“These bold actions will reduce expenses for households and reduce congestion on our highways,” added Dan Carter, Mayor of Oshawa.
“The Ontario Trucking Association applauds the Government of Ontario for its leadership,” said Stephen Laskowski, President and CEO of the OTA.
Kelly Higginson, CEO of Restaurants Canada, said the permanent gas tax cut is “a significant benefit to the foodservice industry” that will help consumers and restaurants alike.
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