Doug Ford will Cut Gas Taxes by Ten Cents Per Litre

Predicts a Liberal/NDP carbon tax agenda that would see prices at the pump soar to $2.00/litre!
Ontario PC Leader Doug Ford today announced that an Ontario PC Government will cut the price of gas by ten cents per litre. These savings will be achieved by eliminating the Liberal/NDP cap-and-trade scheme, reducing Ontario’s provincial fuel tax, and stopping the Liberal/NDP carbon tax.
“These are real savings that will lower the cost of filling-up your car and leave more money in your pocket, while at the same time supporting families and businesses by keeping the costs of goods and services low,” said Ford. “Ours is the only Party that understands that gas is an absolute necessity that not only gets people around, but also fuels our economy.”
High gas prices have been shown to have negative impacts on the economy, increasing the cost of transporting everyday items such as food products families buy at the grocery store, as well as increasing costs on other goods and services. Lower income individuals and families tend to be negatively affected the most by rising gas prices as they have less money to spend on other necessities, and often go further into debt as a result.
Ford highlighted how Kathleen Wynne’s cap-and-trade scheme, supported by Andrea Horwath’s NDP, is already adding 4.3 cents per litre at the pump. He also highlighted that the cap-and-trade price-tag is projected to grow by an additional 428 per cent which, on its own, will add 23 cents per litre to the price Ontario drivers pay for gas.
“For an average driver, that’s an additional $500 a year for gas alone — just to pay for Wynne’s cap-and-trade scheme,” said Ford. “If you need to drive a car to get to work, to school, or to pick up your kids from daycare, the Liberals and the NDP will have their hands in your pocket every time you fill up your car.”
Ford highlighted that the Liberals and NDP are following the example of British Columbia, which was the first jurisdiction in Canada to impose a carbon tax, and where gas prices have already soared to $1.61 per litre – the highest price ever paid by drivers anywhere in North America.
“Make no mistake, one of the biggest things the Liberals and NDP agree on is imposing new tax-grabbing schemes on Ontario families and businesses,” said Ford. “The Ontario PC Party is the only Party who can stop the Liberals and NDPs plans to soar gas prices to $2.00 per litre,” concluded Ford.


Backgrounder – Gas Prices

  • Gas prices across the province are soaring. Prices in Toronto recently hit a 4-year high,[1] which, understandably, does not sit well with drivers throughout Ontario.
  • The province’s own study demonstrates that cap-and-trade increases the cost of gas in Ontario by 4.3 cents per litre.[2] This is extremely hard on people who have no choice but to drive to work, and
  • mothers and fathers who drive to pick up their children, especially given the fact that 72 per cent of Ontarians believe carbon taxes are a pointless tax grab.[3]
  • Under the Liberals, this scheme is only beginning. Cap-and-trade is currently at $18 per tonne.[4] However, it is expected to rise to $95 per tonne by 2030, according to carbon pricing experts at the environmental research firm, ICF.[5] That’s a 428 per cent increase.
  • Gas prices are higher because of Kathleen Wynne’s cap-and-trade scheme. With the incoming 428 per cent increase, cap and trade will cost taxpayers an extra 22.7 cents per litre at the pump – an economic burden Ontarians should not accept.
  • In fact, the average Canadian drives 20,000 km annually.[6] For someone who drives a Ford Escape[7] in Ontario, the additional costs of cap-and-trade (22.7 cents per litre) means you’ll pay an extra $504 per year – this is an additional tax that you weren’t paying before, purely as a result of cap-and-trade.
  • This cap-and-trade cost is on top of the province’s fuel tax which is 14.7 cents per litre for gasoline and 14.3 cents per litre for diesel.[8]
  • Manitoba has not introduced carbon pricing for gasoline, and has the second-lowest prices amongst all Canadian provinces (125.4 cents per litre).[9]
  • British Columbia, the first Canadian province to introduce a carbon tax, along with a series of other taxes and levies, has witnessed gas prices increase to over $1.60 per litre – the highest in North American history.[10]
  • Experts also expect the costs of cap and trade in Ontario to translate into an extra $94 per year in home heating costs,[11]in addition to the increases in retail prices for most goods and services – since fossil fuels are used in the production and transportation of nearly every product.
  • It is important to note that in 2003 gas prices in Toronto were 70.9 cents per litre, on average, compared to the current 138.9 cents per litre.[12]
  • The Auditor General has also reported that cap and trade will cost the average household $285 a year in direct and indirect costs immediately.[13]That number will rise dramatically as the price per tonne increases.

How We Will Fix It:

  • A Doug Ford Ontario PC Government will scrap the cap-and-trade carbon tax and cancel Kathleen Wynne’s cap-and-trade slush fund.
  • The Ontario PCs will challenge, in the Supreme Court of Canada, any attempt by the federal government to impose a carbon tax on Ontario families.
  • Canceling cap and trade means families will save, on average, $285 immediately. This means taxpayers will save an extra 4.3 cents per litre at the pump.
  • Understanding that people need relief from high gas prices, the Ontario PCs will also reduce the provincial fuel tax for both gasoline and diesel to 9 cents per litre from the current 14.7 cents per litre for gasoline, and 14.3 cents per litre for diesel.
  • When the savings from the reduced provincial fuel tax are combined with the savings from scrapping cap and trade carbon tax, the people of Ontario will save an extra 10 cents per litre at the pump.
  • The current exemption for colour fuel will be maintained.
  • A Doug Ford Ontario PC Government will continue to share gas tax revenue with municipalities. They will not receive a corresponding decrease in their transfer payments as a result of this reduction.
  • This policy will cost the government approximately $1.19 billion annually once fully implemented.
  • Doug Ford is the only Leader who will respect the taxpayer, put more money in your pocket, and truly be for the people.