Province to cut gas tax permanently, eliminate Highway 407 East tolls
The Ontario government is moving ahead with plans to reduce costs for families and businesses, announcing permanent cuts to the gas and fuel tax rates and the removal of tolls from the provincially owned section of Highway 407 East. These measures, included in the proposed 2025 Budget, aim to provide ongoing relief amid rising costs and economic uncertainty.
“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,” Premier Doug Ford said. “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.”
The permanent reduction in gas and fuel tax rates, if passed, would keep provincial tax at nine cents per litre, saving the average household approximately $115 annually.
The plan also includes eliminating tolls on the provincially owned stretch of Highway 407 East, from Brock Road to Highway 35/115, effective June 1, 2025. This move is expected to save daily commuters up to $7,200 annually. It follows the government’s earlier decisions to remove tolls from Highways 412 and 418 and its recent legislation banning new road tolls on public roadways across the province.
“Ontario families have seen prices on everyday items go up over the last several years,” Finance Minister Peter Bethlenfalvy said. “To help Ontarians cope with the high cost of living and the impacts of the economic uncertainty caused by tariffs, we are continuing to take action to ease the pressure and do more to help lower costs for households.”
Together, these measures reflect the government’s commitment to making life more affordable for Ontario families and businesses, while also addressing traffic congestion across the region.
Photo: “We’ll always keep looking for ways to put more money back into the pockets of Ontario families,” said Premier Doug Ford.