Ontario Government Announces Permanent Gas Tax Cut and Removal of Highway 407 East Tolls

May 13, 2025

The Ontario government has announced plans to make the current gas tax cut permanent and to eliminate tolls on the provincially owned section of Highway 407 East. Premier Doug Ford stated that these measures aim to reduce transportation costs for Ontarians.

Gas Tax Cut Becomes Permanent

Initially introduced in July 2022, the gas tax cut reduced the gasoline tax by 5.7 cents per litre and the diesel tax by 5.3 cents per litre. The government now intends to make this reduction permanent, estimating that it will save the average Ontario household approximately $380 annually.

Elimination of Tolls on Highway 407 East

The province plans to remove tolls from the publicly owned portion of Highway 407 East, which runs from Brock Road in Pickering to Highway 115 in Clarington. According to the government, this change could save daily commuters up to $7,200 per year. It's important to note that this proposal does not affect the privately operated portion of Highway 407, known as the 407 ETR, which remains under a 99-year lease agreement established in 1999.

Political Responses and Future Plans

Opposition parties have presented their perspectives on these proposals. Ontario NDP Leader Marit Stiles has pledged to remove tolls on the entire Highway 407, including the privately operated section, within the first 100 days if elected. The NDP also proposes to negotiate the buyback of the 407 ETR to bring it under public ownership.

Expert Opinions

Transportation experts have expressed concerns regarding the potential implications of these measures. Peter Miasek, president of Transport Action Ontario, cautioned that removing tolls could lead to increased traffic congestion due to induced demand. He emphasized the importance of investing in public transit and developing compact communities as more sustainable solutions for long-term transportation challenges.

Conclusion

The proposed permanent gas tax cut and the removal of tolls on Highway 407 East are significant components of the Ontario government's strategy to reduce transportation costs for residents. While these measures aim to provide financial relief to drivers, they have also sparked discussions about their potential impact on traffic congestion and environmental sustainability. As the province approaches the upcoming election, these proposals are likely to remain central topics of debate among policymakers, experts, and the public.

Sharing Matters: Keeping Each Other Informed About What Affects Us All

Decisions like cutting the gas tax or removing tolls on a major highway don’t just affect individuals — they impact entire communities. Whether you drive to work every day, run a small business, or live on a tight budget, these changes influence the cost of living and how we move through our province.

That’s why it’s important to share articles like this one. Passing along accurate, up-to-date information helps others stay aware of decisions that affect their daily lives. A quick share might help a neighbour save money on their commute or give someone a better understanding of what’s happening in their region.

When we keep each other informed, we’re not just spreading news — we’re building a more connected, prepared, and empowered Ontario.

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