Ontario residents could see the price at the pump decreased slightly by this summer.
On Monday (April 4, 2022) the province introduced legislation that would if passed cut the gas tax by 5.7 cents per litre and the fuel tax by 5.3 cents per litre for six months starting July 1, 2022.
Kenora-Rainy River MPP, Greg Rickford said that the province is taking another look as to how they can cut costs at the pumps for consumers.
“The Carbon Tax just walked in and leveled us with another couple cent hike,” said Rickford. “Gas across the country is at an all-time high. We’ve already knocked five cents off, it got swallowed up with the global markets.”
If passed Ontarians would see combined savings of $465 in 2022 with the proposed gas tax cut along with the already elimination of licence plate renewal fees.
On Friday (April 1, 2022) the federal Carbon Tax took effect bringing a 2.2 cent per litre increase to gas. That increase was seen in Kenora with gas rising from 181.9 per litre up to 184. 4 per litre at some stations, which triggered continued record high prices.
Kenora isn’t the only community facing tough gas hikes Sioux Lookout reported prices being 190.7, 197.8, and 211.0 cents per litre according to GasBuddy. Dryden was much lower reporting prices between 185.9 – 188.4 cents per litre. On Monday (April 4, 2022) prices in Red Lake were as high as 191.9 cents per litre.
Kenora has been labeled as the 26th most expensive gas price average in Canada with an average of 184.1 cents per litre.
Data from the European Union Agency for the Cooperation of Energy Regulators shows that Germany and Italy import about half of their fuel from Russia, France imports about a quarter of their fuel supply, with many smaller countries relying exclusively on Russian gas. Russia is the third-largest fuel exporter around the globe.
GasBuddy’s Head of Petroleum Analysis, Patrick DeHaan, agrees the Russian invasion of Ukraine has destabilized markets around the world, but thankfully, we could start a see a drop in fuel prices by the end of 2022, as record-high oil prices help incentivize additional gasoline production.
Effective July 1 until December 31, 2022, the gas tax rate would be cut from 14.7 cents per litre to 9 cents per litre, representing a cut of 5.7 cents per litre. The fuel tax rate, which includes diesel, would be reduced from 14.3 cents per litre to 9 cents per litre, representing a cut of 5.3 cents per litre.
The Ontario government is also continuing to call on the federal government to help families and businesses in the face of rising costs by cutting the carbon tax, which increased to 11.05 cents per litre on gasoline and 13.41 cents per litre on diesel on April 1, 2022.
GasBuddy states that the most expensive gas in Canada can be found in Abbotsford, BC at a whopping 202.9 cents per litre. The cheapest gas price in Canada is 144.9 cents per litre in Leduc, AB.