Ontario has decided to extend the temporary tax cut aimed at helping drivers save money at gas stations until next summer.

The law, if passed, would maintain the tax exemption that lowers the price of both gas and fuel.

For his part, Ontario Premier Doug Ford, speaking at a gas station in Etobicoke on Tuesday, said, "Most people are struggling now. They are suffering from the rising cost of gasoline and groceries, with increasing rent and mortgage costs, and how life has become very expensive."

The 5.7-cent reduction, which was first implemented in July 2022, will be extended again. It was supposed to end in December this year, but it will now remain in effect until June 30, 2024. The 5.3-cent per liter cut on diesel fuel prices will also remain in place.

The Ontario government will also introduce legislation that would reduce taxes on gasoline and fuel.

Ford first promised to cut gas prices by 10 cents per liter during the 2018 election campaign.

At that time, the Progressive Conservative Party of Ontario said it would do so by eliminating the province's gas rebate system and cutting the gas tax.

The government ended the cap-and-trade policy after the 2018 election, aiming to reduce prices by 4.3 cents per liter, but this triggered the start of federal carbon tax support, which canceled out the savings. Ford's government tried to fight the tax in court, but lost.

Ford also called on the Canadian federal government to repeal the carbon tax on Tuesday, saying that Justin Trudeau's government is unfair because it provided a subsidy to some but not others.

Trudeau announced a three-year carbon tax exemption on home heating oil.

The province estimates that the tax exemptions will save families an average of $260 over the price reduction period.