The Ontario government announced on Tuesday, May 13, 2025, its intention to introduce legislation as part of the 2025 budget aimed at a permanent reduction in fuel taxes, as well as the elimination of tolls on the eastern section of Highway 407.

Fuel Tax Reduction

The government stated that the fuel tax rate will remain fixed at 9 cents per liter permanently, a move that would save approximately $115 annually for families in Ontario. This reduction had originally started temporarily in July 2022 and has been extended several times before the government decided to make it permanent.

Elimination of Tolls on Eastern Highway 407

According to the decision, tolls on the provincially owned section of Highway 407, extending from Brock Road to Highway 35/115, will be removed starting June 1, 2025. This measure is expected to save daily drivers up to $7,200 annually. It is noted that the western part of the highway, operated by a private company under a long-term lease, will not be affected by this decision.

Addressing Cost of Living

Premier Doug Ford confirmed that these initiatives are part of the government’s efforts to alleviate rising living costs, especially in light of potential American tariffs that could raise the prices of essential goods. Ford stated, “We are committed to easing the financial burdens on families in Ontario.”

Budget Presentation Date

The bill is expected to be presented within the 2025 budget, scheduled for Thursday, May 15, where further details regarding the government's economic plan will be outlined.