Ontario joins Alberta with diesel tax relief

Avatar photo

Alberta and Ontario will each offer some relief at the pumps in the face of rising fuel prices linked to factors including higher demand and global economic sanctions against Russia.

Ontario’s majority government has introduced legislation that looks to cut fuel taxes by 5.3 cents per liter for six months beginning July 1. The fuel tax rate, which includes diesel, will drop to nine cents per liter, down from the current 14.3 cents.

fuel pump nozzle
(Photo: istock)

“Ongoing supply chain challenges and geopolitical conflicts are pushing up the cost of living from gas to groceries,” Ontario Finance Minister Peter Bethlenfalvy said in a press release. “With these added pressures, families and businesses need extra help to keep costs low. That is why our government is bringing forward legislation to provide tax relief at the pumps and put money back into people’s pockets.”

He also called on the federal government to cut the carbon tax, which increased to 13.41 cents per liter of diesel on April 1.

Ontario residents go to the polls in their next election on June 2.

Alberta, meanwhile, will not collect its provincial fuel tax while oil prices remain high – saving 13 cents per liter of diesel. Combined with the corresponding reduction in GST paid on the fuel, the savings amount to about $185.50 for the 1,364 liters to fill up a typical tractor-trailer, the province adds.

The Alberta measure will remain in place until at least June 30, and be re-evaluated based on the price of West Texas Intermediate crude oil.

“Keeping commercial vehicles on our roads has been challenging because of factors like supply chain issues and driver shortages,” said Alberta Transportation Minister Rajan Sawhney. “Eliminating Alberta’s fuel tax will provide much-needed relief for industries so they can keep moving, remain profitable, and help our economy grow.”

Avatar photo

John G. Smith is Newcom Media's vice-president - editorial, and the editorial director of its trucking publications -- including Today's Trucking, trucknews.com, and Transport Routier. The award-winning journalist has covered the trucking industry since 1995.


Have your say


This is a moderated forum. Comments will no longer be published unless they are accompanied by a first and last name and a verifiable email address. (Today's Trucking will not publish or share the email address.) Profane language and content deemed to be libelous, racist, or threatening in nature will not be published under any circumstances.

*

  • Some deal. It is going to cut into the road repair budget so roads will get worse than they are now as if that wasn’t possible, which pounds trucks into the ground so you spend more money on repairs. So no further ahead.