The Ontario government will extend the gas and fuel tax rate reduction until the end of this year.

The temporary gasoline tax cut of 5.7 cents per liter and the fuel tax cut of 5.3 cents per liter were scheduled to end on June 30.

Premier Doug Ford announced on Monday that the tax will remain as it is until December 31, and the reduction will be part of the provincial budget on March 26.

Ford said: "With the federal government insisting on an expensive carbon tax increase, it has never been more important to provide support at the pumps and return hundreds of dollars to the people's pockets."

The government says the tax rate reduction has saved Ontario families an average of $320 over the past two and a half years since it was first introduced in 2022.

The reduction was proposed as a way to combat inflation as well as the federal carbon tax, which imposes a tax on gasoline in provinces that do not have their own tax on greenhouse gas emissions.

For gasoline, the Ontario government said the federal carbon tax will increase costs at the pump from about 14.31 cents per liter to about 37.43 cents per liter by 2030.

As of April 1, the tax is scheduled to increase to about 17.71 cents per liter in Ontario.

Ford repeated on Monday his call to repeal or halt the federal carbon tax.

He told reporters in Mississauga: "This tax costs hardworking people more money to drive, work, or drop kids off for hockey," "It will increase the cost of everything. It will hurt everyone in Ontario."

Ford’s government also proposes legislation requiring a referendum if future governments decide to impose a carbon tax in Ontario.

If passed, voters would get a "direct say" on any new carbon tax or cap-and-trade system or other carbon pricing program.

Future governments can repeal this legislation if they have sufficient support.

The changes appear to be part of a direct attack against Ontario Liberal leader Bonnie Crombie, who was named in Ford’s announcement as a supporter of the carbon tax, although she has publicly said she would not impose this policy if she were an elected leader.

"Folks, don’t be fooled. Bonnie Crombie continues to support carbon taxes in this tax increase. The carbon tax queen won’t speak for tax hikes next week."

The Liberals in the province last week pledged not to impose a carbon tax themselves while avoiding questions about whether the national policy has their support.