Barrie 
Ontario plans to make its temporary gas and fuel tax cuts permanent and eliminate tolls on a key section of Highway 407 East, measures aimed at reducing everyday costs for residents and businesses.
Erik Mclean/Pexels
As outlined in the upcoming 2025 Budget, the proposed legislation would fix the provincial gasoline and diesel tax rates at 9 cents per litre. These rates were first reduced in July 2022, by 5.7 cents for gasoline and 5.3 cents for diesel, under temporary measures. Since then, Ontario households have saved approximately $1.7 billion. The permanent cut is expected to save an average household about $115 annually.
In addition, tolls will be removed from the provincially owned segment of Highway 407 East, spanning from Brock Road to Highway 35/115. The change is set to take effect on June 1, 2025. According to the province, daily commuters could save up to $7,200 per year. This move follows previous toll removals on Highways 412 and 418 and aligns with legislation passed in 2024 that bans new tolls on public roads.
“I know that families and business owners are worried about rising costs, especially as U.S. tariffs threaten to raise the price of everyday essentials,” said Premier Doug Ford. “That’s why we’re cutting the gas tax permanently and taking tolls off Highway 407 East, and that’s why we’ll always keep looking for ways to put more money back into the pockets of Ontario families.”
Other cost-saving actions previously announced include the elimination of licence plate renewal fees and freezing fees for driver’s licences and Ontario Photo Cards. Per the news release, these, combined with fuel tax cuts, have collectively saved over $1.8 billion in the past year.
Further fiscal details will be included in the provincial budget, scheduled for release on May 15, 2025.
