Provincial gas tax cuts promised by the premier doug ford The June election takes effect the Friday before and experts say it may offer some relief to drivers facing sky-high pump prices, but the long-term benefits to consumers are unpredictable.
The government this spring passed legislation to reduce the gas tax to 5.7 cents a liter and the fuel tax, which includes diesel, to 5.3 cents a liter for six months.
The changes will take effect from July 1 to December 31 and have been estimated to cost the government $645 million.
Regular fuel prices are hovering near or above $2 a liter in cities across the province.
Roger McKnight, chief petroleum analyst at N-Pro International, says the upcoming gas tax cut is an overdue “Band-Aid solution,” but consumers will see some benefit in its early days.
As of Thursday afternoon, McKnight calculated that the drop in prices at Ontario pumps should be around 11 cents a liter on Friday, bringing prices to an average of 1.929 cents a liter.
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