Will free highways and cheaper gas keep Ontario families afloat as US tariffs bite?
Ontario is permanently cutting gas and fuel taxes and removing tolls from Highway 407 East in a move aimed at easing pressure from the rising cost of living and U.S. tariffs. The 2025 Ontario Budget promises relief for families and businesses with long-term cost-saving transportation and tax policies
But now, Singh and thousands like her may see some long-awaited relief thanks to the Ford government’s latest budget promises.
Ontario Premier Doug Ford has unveiled a suite of measures in the upcoming 2025 Budget aimed at permanently cutting costs for households and commuters.
Central to this effort is the plan to permanently reduce gasoline and fuel tax rates, potentially saving families an average of $115 annually.
Alongside this, tolls will be removed from the provincially owned stretch of Highway 407 East, potentially saving daily commuters up to $7,200 per year.
Also read: Doug Ford calls for a Team Canada approach and vows economic retaliation against Trump's tariffs, pledging to hit Americans hard without harming Canadians The government says these initiatives are part of a larger strategy to shield Ontario families from the rising cost of living, which is being compounded by economic uncertainty and new U.S. tariffs.
“I know that families and business owners are worried about rising costs, especially as U.S. tariffs threaten to raise the price of everyday essentials,” said Premier Doug Ford.
Live Events Permanent tax relief to offset soaring living costs As part of the 2025 Budget, Ontario is introducing legislation to lock in gas and fuel tax cuts at nine cents per litre.
Originally introduced as a temporary measure in 2022, the cut has already saved households $1.7 billion.
By making it permanent, the government hopes to extend that savings well into the future.
“Ontario families have seen prices on everyday items go up over the last several years,” said Finance Minister Peter Bethlenfalvy.
The tax reduction is being framed as a key buffer against inflation and tariffs, especially as fuel costs ripple into grocery prices, transport logistics, and daily commutes.
407 East tolls gone by June: a major win for drivers Another major move is the removal of tolls on Highway 407 East, from Brock Road to Highway 35/115, starting June 1, 2025.
This marks the end of tolling on provincially owned highways in Ontario, following similar decisions for Highways 412 and 418, and the recent legislation banning new tolls on public roads.
Also read: Is Canada new global force in nuclear power as SMR construction begins in Ontario? “The measures announced today will not only help to reduce traffic and commute times, but they will help put money back in the pockets of hardworking families,” said Minister of Transportation Prabmeet Sarkaria.
The government also highlighted previous moves such as the elimination of licence plate renewal fees and freezing driver’s licence charges, contributing to $1.8 billion in collective savings.
“By permanently cutting the gas tax, we’re fulfilling our commitment to put more money back into the pockets of hardworking families,” added Minister Stephen Lecce.
More details will be outlined in the full 2025 Ontario Budget, set for release on May 15.
